Suppose GDP equals $10 trillion, consumption equals $6.5 trillion, the government spends $2 trillion and has...

 

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Suppose GDP equals $10 trillion, consumption equals $6.5 trillion, the government spends $2 trillion and has a budget deficit of $300 billion. • Find public saving, net taxes, private saving, national saving, and investment. Public saving = T-G • Net taxes: T = G • - Private saving=Y-T-C National saving S=Y-C-G Investment = national saving Suppose GDP equals $10 trillion, consumption equals $6.5 trillion, the government spends $2 trillion and has a budget deficit of $300 billion. • Find public saving, net taxes, private saving, national saving, and investment. Public saving = T-G • Net taxes: T = G • - Private saving=Y-T-C National saving S=Y-C-G Investment = national saving

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Lets calculate each of the values step by step 1 Public Saving Public Saving ... View the full answer