Suppose that in a closed economy, GDP is $15 trillion, Consumption is $6 trillion, Government Purchases are $5 trillion, and there is a $500 billion budget deficit. 6. What are taxes? 7. What is public saving? 8. What is private saving?

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A: Given  GDP = $30 trillion.  Consumption = $20 trillion.  Government spending = $4 trillion.  Budget…

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A:

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A: Since you have not mentioned which question you require an answer for, as per our standard procedure…

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Q: None

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A: Private saving: The portion of income that individuals save after taxes and consumption.Public…

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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.