Consider country D, which is a closed economy. Suppose that D’s investment is 100, disposable income is 500 and the consumption 550. Answer D’s public saving and if government spending G is more than, less than or equal to the tax T. You need to use I = S, S = Private saving + Public saving The definition of private saving Then, you can answer how much is the public saving. Regarding G, remember the definition of public saving. Public saving: G:

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.