Use the following to answer questions :
Scenario: A Small Economy
Suppose there is no trade and no government in a small economy. GDP is $25 trillion, and consumption spending is $18 trillion this year.
-(Scenario: A Small Economy) Look at the scenario A Small Economy. There is a new government, and it imposes taxes on its citizens to spend on infrastructure. Taxes and government spending are both $2 trillion. What is the level of private saving now?
A) $11 trillion
B) $7 trillion
C) $5 trillion
D) $18 trillion
Correct Answer:
Verified
Q42: Which statement is CORRECT?
A) The budget deficit
Q52: National savings equals:
A) private savings plus consumption
Q54: Use the following to answer questions :
Scenario:
Q55: Capital inflow is:
A) the net inflow of
Q56: If a country has a trade surplus,
Q57: Net capital inflow equals:
A) national savings.
B) imports
Q59: Use the following to answer questions :
Q60: Use the following to answer questions :
Q69: The demand for loanable funds is _
Q73: The government can increase savings by:
A) taxing
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