If income is $100, income tax is $10, consumption is $60, government tax revenue is $10...
If income is $100, income tax is $10, consumption is $60, government tax revenue is $10 and government expenditure is $ 8, what is the domestic saving?
a. $30
b. $32
c. $40
d. $25
e. none of the above
Homework Answers
Answer
Option b
$32
======
Domestic saving =Y-C-G
=100-60-8
=$32
======
or
Disposable income =income -tax=100-10=90
pricate Saving =income -consumption =90-60=30
Public saving =T-G=10-8=2
Sum of the savings =30+2=32
the domestic saving is $32
Option b
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