Assume that the government of Newworld has taxes of $1 million, transfer pay- ments of $0.6 million, and interest payments on the government debt of $0.1 million. If government purchases of goods and services are $0.3 million. Invest- ment of Newworld is $0.2 million and the current account balance of Newworld is $-0.1 million. How much is the private saving in Newworld? (A) $0.1 million. (B) $0 million. (C) $-0.1 million. (D) $-0.3 million.
Assume that the government of Newworld has taxes of $1 million, transfer pay- ments of $0.6 million, and interest payments on the government debt of $0.1 million. If government purchases of goods and services are $0.3 million. Invest- ment of Newworld is $0.2 million and the current account balance of Newworld is $-0.1 million. How much is the private saving in Newworld? (A) $0.1 million. (B) $0 million. (C) $-0.1 million. (D) $-0.3 million.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Refer to image. Please show work using private savings formula;
Spvr = (Y + NFP + TR + INT -T) - C
![Assume that the government of Newworld has taxes of $1 million, transfer pay-
ments of $0.6 million, and interest payments on the government debt of $0.1
million. If government purchases of goods and services are $0.3 million. Invest-
ment of Newworld is $0.2 million and the current account balance of Newworld
is $-0.1 million. How much is the private saving in Newworld?
(A) $0.1 million.
(B) $0 million.
(C) $-0.1 million.
(D) $-0.3 million.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0e777ab-c514-4163-8f7b-2f1ace01003d%2F9b6c40fe-e49d-4a83-9c47-0c69fdb9eebe%2Fhvkacsp_processed.png&w=3840&q=75)
Transcribed Image Text:Assume that the government of Newworld has taxes of $1 million, transfer pay-
ments of $0.6 million, and interest payments on the government debt of $0.1
million. If government purchases of goods and services are $0.3 million. Invest-
ment of Newworld is $0.2 million and the current account balance of Newworld
is $-0.1 million. How much is the private saving in Newworld?
(A) $0.1 million.
(B) $0 million.
(C) $-0.1 million.
(D) $-0.3 million.
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