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You are given the following information
You are given the following information.
Savings
S = 150
Investment
I = 100
Taxes
T = 250
Government Purchases
G = 500
Compute the level of private savings, public savings, and national savings.
Expert Solution
Private saving = S = 150
Public saving = Taxes - Government purchase
= 250- 500
= -250
National saving = Public saving + private saving
= 150+ (-250)
= -100
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