a. Private saving is : $ ___Trillion b. Investment Spending is : $___Trillion c. Transfer Payments are: $___Trillion

a. Private saving is : $ _Trillion b. Investment Spending is : $_Trillion c. Transfer Payments are: $___Trillion

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 13CQ

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

Aa3

a. Private saving is : $ ___Trillion

b. Investment Spending is : $___Trillion

c. Transfer Payments are: $___Trillion

d. The government budget balance is : $ ___Trillion and as a result the government budget is in ___( deficit or surplus)

Please show your work. (thumbs down for wrong answers)

Consider the following data for a closed economy:
Y = $15 trillion
C = $9 trillion
G = $2 trillion
Spublic = $-1.0 trillion
T = $3 trillion

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