Question

Using the circular flow diagram in the notes and the following values find National Savings.

C = 475

I = 75

G = 60

T = 84

NX = 20

Answer 1

So, National Savings = Public savings + Private savings = (T-G)+(Y-T-C)= Y-G-C.
Y = C + I + G + NX - T= 475 + 75 + 60 + 20 – 84 = 546.
National Savings = 546 – 60 – 475 = 11.
ANSWER: National Savings = 11.