Scenario 6.1 Consider the Following Data for a Closed Economy

Scenario 6.1
Consider the following data for a closed economy:
Y = $1 200 billion
C = $800 billion
I = $200 billion
G = $200 billion
TR = $200 billion
T = $300 billion
-Refer to Scenario 6.1.Based on the information above, what is the level of public saving?

A) $0
B) $100 billion (a surplus of $100 billion)
C) $200 billion (a surplus of $200 billion)
D) negative $100 billion (a deficit of $100 billion)
E) negative $200 billion (a deficit of $200 billion)

Correct Answer:

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