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Chrome File Edit View History Bookmarks People Window Help 5 A A DA0 57% Canadian French-cSA Sun 6:24 PM a E o chap 15 prir o Macroecono X G Suppose the X Sarah MoMIS hhou x Job Listings x D Campus S x Topic: Reche X Google x DEco2013-c x Problem set X C ezto mheducation.com hm.tpx Question 18 (of 27) Save & Exit Submit Shopp 18 value 0.37 points Suppose the following information describes the economy: 8000 Consumption Investment 1,000 Government purchases 1,000 Net exports Government transfers and interest payments 500 1,700 Government tax collections Private saving equals public saving equals national saving equals O 800: 200 600 O 800: 200: 1,000 O 000: 800: 1,000 O 1,500; 700: 2,700 References Learning Objective: 08-02 Multiple Choice Difficulty: 03 Hard Show A In Class-e03h1 majors.xlsx café Taiwan jpg café en France. jpeg u ch05-practice rtf

Explanation / Answer

Calculate National Income (Y) -

Y = Consumption + Investment + Government purchases + Net Exports

Y = 8,000 + 1,000 + 1,000 + 0

Y = 10,000

Private savings = National income - Consumption - Government tax collections + Government transfer and interest payments

Private savings = 10,000 - 8,000 - 1,700 + 500

Private savings = 800

Private saving equals 800.

Public saving = Government tax collections - Government purchases - Government transfers and interest payments

Public saving = 1,700 - 1,000 - 500

Public saving = 200

Public saving equals 200.

National saving = Private saving + Public saving

National saving = 800 + 200

National saving = 1,000

National saving equals 1,000.

Hence, the correct answer is option 2.

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