Question

If in the economy, business saving equals $240 billion, household saving equals $15 billion and government saving equals -$150 billion, what is the value of national saving?

Answer 1

Answer:

$105 billion

Explanation:

We know that

The national saving equal to

= Private saving + public saving

where,

Private saving = Business saving + household savings

                        =$240 billion + $15 billion

                        = $255 billion

And, the public saving would be -$150 billion

So, the national saving would be

= $255 billion - $150 billion

= $105 billion