Ask Question
2 October, 22:38

We have the following data for a hypothetical open economy: GNP = $14 comma 00014,000 Consumption (C) = $7 comma 5007,500 Investment (I) = $1 comma 0001,000 Government Purchases (G) = $1 comma 2001,200 Tax Collections (T) = $1 comma 2001,200 What is the value of private savings plus public savings? $nothing (Enter your answer as an integer. Include a minus sign if necessary.

+4
Answers (1)
  1. 3 October, 01:00
    0
    Answer: $5,300

    Explanation:

    Private Saving refers to money that households did not consume nor pay as taxes so the formula is;

    = Output - Consumption - Taxes

    = 14,000 - 7,500 - 1,200

    = $5,300

    Public Saving refers to money that the government got as revenue but did not spend so the formula is;

    = Taxes - Government Spending

    = 1,200 - 1,200

    = $0

    Total Saving (Private + Public Saving)

    = 5,300 + 0

    = $5,300
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “We have the following data for a hypothetical open economy: GNP = $14 comma 00014,000 Consumption (C) = $7 comma 5007,500 Investment (I) = ...” 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