PS4_S and I.docx - Introduction to Macroeconomics Multiple Choices 1 Private savings is equal to a income plus investment b taxes minus government

PS4_S and I.docx - Introduction to Macroeconomics Multiple...

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Introduction to Macroeconomics Multiple Choices 1. Private savings is equal to: a. income plus investment.b. taxes minus government spending on goods and services.c. income after taxes minus consumption.d. the total amount of savings accounts plus stocks plus bonds owned by households. 2. The government saves when: 3. According to the savings-investment spending identity: 4. Suppose there is no trade and no government in a small economy. The GDP is equal to $25 million, and consumption spending is equal to $18 million this year. There is a new government, and it imposes taxes on its citizens in order to spend on infrastructure. Taxes are equal to $2 million and government spending is equal to
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