Public sving vs. Private saving

Question 1

gov’t budget balance

Answer 1

tax rev- gov’t transfer payment- G
T-G
=public savings

Question 2

net taxes

Answer 2

net rev- gov’t transfer payment

Question 3

private savings

Answer 3

Y-T-C

Question 4

total savings (S)

Answer 4

private saving+ public savings= I

(Y-T-C)+(T-G)=I

Question 5

Market for loanable funds when R rises

Answer 5

some households save more, some save less

- assume that households savings rise a little