Question

In: Economics

Suppose the following information describes the economy:Consumption8,000Investment1,000Government purchases1,000Net exports...

Suppose the following information describes the economy:

Consumption	8,000
Investment	1,000
Government purchases	1,000
Net exports	0
Government transfers and interest payments	500
Government tax collections	1,700

Private saving equals ____; public saving equals ______; national saving equals ____.

Multiple Choice

800; 200; 1,000
1,500; 700; 2,700
1,000; 800; 1,000
800; 200; 600

Expert Solution

Solution -

Option A . 800; 200; 1,000 is Correct Option .

Reason -

Private Saving = Y -T -C

= 10500 - 1700 - 8000

= 800

Public Saving = T - G

= 1700 - 1500

= 200

National Saving = Public + Private

= 200 + 800

= 1000

Rahul Sunny answered 3 years ago

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