In a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to public and national saving?   a. public and national saving would rise   b. public saving would fall and national saving would rise   c. public saving would rise and national saving would fall   d. public and national saving would fall

Q: Fill in the blanks: The following shows information of a hypothetical economy in a given year.…

A: Y=Consumption+Investment+Government purchase+Net Exports Y=350+100+125+(60-50)Y=575+10Y=585

Q: Briefly explain what a change in any part of the national saving and investment identity points out.

A:

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A: Saving: The money that has been saved through a bank or official scheme.

Q: briefly discuss direct interventions of government for national saving?

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A:

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.