Suppose GDP-11 billion, taxes-3 billion, private saving-0.9 billion, and public saving-0.6 billion: Consumption spending-7.1. Government spending-2.4. O Consumption spending-7.1, Government spending-3. Consumption spending-8, Government spending-3.6. Consumption spending-8, Government spending-3.

Suppose GDP-11 billion, taxes-3 billion, private saving-0.9 billion, and public saving-0.6 billion: Consumption spending-7.1. Government spending-2.4. O Consumption spending-7.1, Government spending-3. Consumption spending-8, Government spending-3.6. Consumption spending-8, Government spending-3.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Savings,investment And The Financial System

Section: Chapter Questions

Problem 3QR

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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

Suppose GDP-11 billion, taxes-3 billion, private saving3D0.9 billion, and public saving-0.6 billion:
O Consumption spending-7.1, Government spending-2.4.
O Consumption spending-7.1, Government spending-3.
Consumption spending-8, Government spending 3.6.
Consumption spending-8, Government spending-3.

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