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Answer :
Answer:
$2 trillion
Explanation:
National saving = private saving + pubic saving
Public saving = Tax - Government Spending
$0.5 trillion - $2 trillion = -$1.5 trillion
Private saving = income - taxes - Consumption
$12 trillion - $8 trillion- $0.5 trillion = $3.5 trillion
National saving = $3.5 trillion -$1.5 trillion = $2 trillion
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Rewritten by : Jeany
Answer:
The correct option is $3.5 trillion
Explanation:
National saving is what is left in an economy after having paid for consumption expenditure and taxes.
National saving=Income-Consumption-Taxes
Income here is the GDP of $12 trillion
Consumption is $8 trillion
Taxes is $0.5 trillion
National saving=$12 trillion-$8 trillion-$0.5 trillion
national saving=$3.5 trillion
$3.5 trillion left after taking taxes and consumption,invariably that is the national saving in the economy for that particular year
The government expenditure of $2 trillion is not relevant for the requirement in this question
