Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 26 - Part IX - Saving, Investment, and the Financial System - Quick Check Multiple Choice - Page 567: 2

Answer

d) private saving is negative but public saving is positive

Work Step by Step

Private saving = Household income - household consumption When consumption exceeds after-tax income, private saving is negative. Public saving = Tax revenue - government expenditure When tax revenue exceeds expenditure, public saving is positive.
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