In a closed economy, what does (Y - T - C) represent()
A. national saving
B. government tax revenue
C. public saving
D. private saving
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The purchase of a new house is the one form of()
A. investment that is financed by private saving rather than public saving.
B. household spending that is not counted as part of investment in the national income accounts.
C. household spending that is investment rather than consumption.
D. household spending that does not contribute to GDP.
In a closed economy, national saving is()
A. usually greater than investment.
B. equal to investment.
C. usually less than investment because of the leakage of taxes.
D. always less than investment.
According to the definitions of national saving and private saving, if Y,C, and G remained the same, an increase in taxes would ()
A. raise both national saving and private saving.
B. raise national saving and reduce private saving.
C. leave national saving and private saving unchanged.
D. leave national saving unchanged and reduce private saving.
Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 2,000. What value of government purchases would make national savings equal to 1,000 and at that value would the government have a deficit or surplus?()
A. 2,500, deficit
B. 2,500, surplus
C. 1,000, deficit
D. 1,000, surplus
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