Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $100,000;taxes = $22,000;government purchases = $25,000;national
saving = $15,000.
-Refer to Scenario 26-1.For this economy,private saving amounts to
A)$22,000.
B)$18,000.
C)$15,000.
D)$37,000.

Question

Quizplus · Accepted Answer

Private saving equals national saving minus government saving. In this case, private saving = $15,000 (national saving) - $0 (no government saving) = $15,000. Therefore, the answer is B.