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mojhsa [17]
3 years ago
9

Scenario 22-3: Economy of Centralia Centralia has no trade and no government. GDP = $25 trillion. Consumption Spending = $18 tri

llion. Use Scenario 22-3. Consider the information on the economy of Centralia. What is the level of private saving in Centralia?
Business
1 answer:
erastovalidia [21]3 years ago
8 0

Answer:

The level of private saving in Centralia is $7 trillion.

Explanation:

The economy of Centralia has no trade and no government.

The level of GDP is given as $25 trillion.  

Consumer spending is $18 trillion.  

The level of private savings, in this case, will be the difference between the GDP or total income and consumption spending.  

Private savings  

= $25 trillion - $18 trillion

= $7 trillion

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