Ask Question
5 April, 22:01

In a small closed economy investment is $50 billion and private saving is $45 billion. What are public saving and national saving?

a. $5 billion and $50 billion

b. $5 billion and $45 billion

c. - $5 billion and $50 billion

d. - $5 billion and $45 billion

+1
Answers (1)
  1. 6 April, 01:39
    0
    The correct answer is option a.

    Explanation:

    A closed economy does not get involved in international trade. So there are no exports and imports in such an economy. The investment in such an economy is equal to the total saving, including both public as well as private.

    In the given example, the investment in the economy is $50 billion.

    This means that national saving is $50 billion as well.

    Out of this $50 billion, the private saving is $45 billion.

    So the public saving will be

    = National saving - Private saving

    = $50 billion - $45 billion

    = $5 billion
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In a small closed economy investment is $50 billion and private saving is $45 billion. What are public saving and national saving? a. $5 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers