If national saving equals $100,000, net taxes equal $100,000 and government expenditure equals $25,000, what is private saving?
A)$25,000
B)$175,000
C)- $25,000
D)$225,000
E)zero

Question

Quizplus · Accepted Answer

Private saving is calculated as national saving minus public saving. Public saving is net taxes minus government expenditure, which is $100,000 - $25,000 = $75,000. Therefore, private saving is $100,000 - $75,000 = $25,000.

If National Saving Equals $100,000, Net Taxes Equal $100,000 and Government