Suppose that GDP is equal to 1000,national saving is equal to 200,the current account deficit is equal to 100,and the government budget deficit is equal to 50. Private savings must equal
A) 150.
B) 200.
C) 250.
D) 300.

Question

Quizplus · Accepted Answer

National saving = Private saving + Government saving (i.e., budget balance) + Foreign saving (i.e., current account balance)

200 = Private saving + (-50) + (-100)

Private saving = 250

Suppose That GDP Is Equal to 1000,national Saving Is Equal