In a Closed Economy,if Y Remained the Same,but G Rose,T

question 72

Multiple Choice

In a closed economy,if Y remained the same,but G rose,T rose by the same amount as G,and C fell but by less than the increase in T,what would happen to private and national saving?

• A)national saving would fall and private saving would rise
• B)national saving would rise and private saving would fall
• C)both national saving and private saving would fall
• D)None of the above is correct.

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