Question

According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would __________.a. raise both private and public saving.b. raise private saving and lower public saving.c. lower private saving and raise public saving.d. lower private and public saving.

Answer 1

Answer:

c. lower private saving and raise public saving.

Explanation:

According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would lower private saving and raise public saving.