Suppose in a closed economy with negative national saving, consumption is 80% of GDP, taxes net of transfers are 20% of total consumption and investment, and government spending is greater than investment. Which of the following statements is true?

A. Private saving is less than 0% of GDP

B. Investment is less than 10% of GDP

C. Private saving is greater than public saving

D. Public saving is less than 10% of GDP

E. More than one of the options listed is correct

Answer rating: 100% (QA)

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