In: Economics
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
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