Asked by AWebb Moran on Jun 10, 2024
Verified
In the national income accounting identity showing the equality between national saving and investment, what are the algebraic expressions for private saving and public saving?
Private Saving
The portion of individuals' or households' income that is not consumed and is instead saved or invested.
Public Saving
The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.
- Explain the concept of national saving within a closed economy and identify its elements.
- Describe the impact of fiscal policies on national saving and investment.
Verified Answer
BS
Learning Objectives
- Explain the concept of national saving within a closed economy and identify its elements.
- Describe the impact of fiscal policies on national saving and investment.