Suppose in a closed economy with positive national saving, consumption is 70% of GDP, taxes net of transfers are 30% of total consumption and investment, and government spending is less than investment. Which of the following statements is true? (a) Public saving is greater than private saving. (b) Private saving is 9% of GDP. (c) Public saving is less than 10% of GDP. (d) Investment is less than 10 Also give Why other False.
Suppose in a closed economy with positive national saving, consumption is 70% of GDP, taxes net of transfers are 30% of total consumption and investment, and government spending is less than investment. Which of the following statements is true? (a) Public saving is greater than private saving. (b) Private saving is 9% of GDP. (c) Public saving is less than 10% of GDP. (d) Investment is less than 10 Also give Why other False.
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Savings,Investment And The Financial System
Section: Chapter Questions
Problem 2QCMC
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Suppose in a closed economy with positive national saving, consumption is 70% of
(a)
(b) Private saving is 9% of GDP.
(c) Public saving is less than 10% of GDP.
(d) Investment is less than 10
Also give Why other False.
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