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

question 6

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

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, resulting in net profit or loss.

Balance Sheet

A financial summary showing a company's assets, liabilities, and equity from shareholders at a designated time.

Prepared

The state of being ready for a specific event, action, or process, often involving prior planning or setup.

Unearned Fees

Income received by a company for services yet to be performed or goods to be delivered, recognized as a liability on the balance sheet until earned.