Answer to Question #132980 in Macroeconomics for Affan Islam

Question

You are given the following information.

Savings S = 150

Investment I = 100

Taxes T = 250

Government Purchases G = 500

Compute the level of private savings, public savings, and national savings.

Answer 1

#Q132980

From the information given;

public saving= Taxes - Government purchases

=250-500

=-250

savings=private savings

private saving =150

National saving = public saving +private saving

=-250+150

=-100

$\because$ National saving =-100