Suppose the following information describes the economy: $$\begin{array} { l r }
\text { Consumption } & 8000 \
\text { Investment } & 1,000 \
\text { Government purchases } & 1,000 \
\text { Net exports } & 0 \
\text { Government transfers and interest payments } & 500 \
\text { Government tax collections } & 1,700
\end{array}$$
Private saving equals ____;public saving equals ______;national saving equals ____.

Question

Suppose the following information describes the economy: $$\begin{array} { l r } 
\text { Consumption } & 8000 \
\text { Investment } & 1,000 \
\text { Government purchases } & 1,000 \
\text { Net exports } & 0 \
\text { Government transfers and interest payments } & 500 \
\text { Government tax collections } & 1,700
\end{array}$$
Private saving equals ____;public saving equals ______;national saving equals ____.

Quizplus · Accepted Answer

Private saving is calculated as (Income - Consumption - Taxes + Transfers), which is (10,000 - 8,000 - 1,700 + 500) = 800. Public saving is (Taxes - Government purchases - Transfers), which is (1,700 - 1,000 - 500) = 200. National saving is the sum of private and public saving, which is 800 + 200 = 1,000.

Suppose the Following Information Describes the Economy Private Saving Equals ____;Public Saving Equals ______;National Saving Equals ____

Suppose the Following Information Describes the Economy Private Saving Equals ;Public Saving Equals ;National Saving Equals __