If National Saving Equals $100,000, Net Taxes Equal $100,000 and Government

question 43

Multiple Choice

If national saving equals $100,000, net taxes equal $100,000 and government expenditure equals $25,000, what is private saving?

• A)$25,000
• B)$175,000
• C)- $25,000
• D)$225,000
• E)zero

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Definitions:

Treasury Notes

Medium-term interest-bearing securities issued by the U.S. government with maturity terms typically between 2 to 10 years.

Initial Maturities

Refers to the initial period before a financial instrument or security matures or expires.

Commercial Paper

A short-term unsecured debt instrument issued by corporations to finance their immediate operational needs.

Unsecured Debt

A type of debt or general obligation that is not protected by a guarantor or collateralized by a lien on specific assets of the borrower.