Which of the Following Is FALSE About Private Savings and Government

question 6

Multiple Choice

Which of the following is FALSE about private savings and government savings?

• A) Sᴾ = Y - T - C
• B) Unlike private saving decisions, government saving decisions are often made with an eye toward their effect on output and employment.
• C) Total savings (
• S) = Sᴾ + .
• D) The national income identity can help us to analyze the channels through which government saving decisions influence macroeconomic conditions.
• E) None of the above; all statements are true.

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Definitions:

Depreciated

The decrease in the value of an asset over time due to wear and tear or obsolescence.

Modified Accelerated Cost Recovery System

A method of depreciation in the U.S. tax code that allows for faster asset depreciation in the early years of the asset's life.

U.S. Federal Income Tax

The financial charge imposed annually by the Internal Revenue Service on the income of individuals, corporations, trusts, and various legal entities.

Depreciating Assets

Assets that lose value over time due to use, wear and tear, or obsolescence, such as machinery, vehicles, and buildings.