Question

For a closed economy, gdp is $18 trillion, consumption is $13 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. what are private saving and national saving? $3 trillion and $1 trillion, respectively $3 trillion and $2 trillion, respectively $2 trillion and $3 trillion, respectively $2 trillion and $2 trillion, respectively

Answer 1

Answer:

$3 trillion and $2 trillion, respectively

Explanation:

Private savings in (Income - Taxes) -Consumption

National/Public Savings are (taxes - expenditures)