The GDP of Country A is equal to $124.5 billion, and the consumption expenditure in the economy is $85.9 billion. The government of Country A charges a flat tax rate of 20 percent. The government also spends $4.5 billion per year in the form of transfer payments. The household saving in the country is:

a. $38.6 billion.
b. $22.5 billion.
c. $13.7 billion.
d. $12.9 billion.


c

Economics

You might also like to view...

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation

Indicate whether the statement is true or false

Economics

In which governance form do shareholders own the company?

A) public sector B) state-owned enterprise C) corporation D) non-profit

Economics

Personal income equals disposable personal income plus:

a. personal income taxes. b. transfer payments. c. dividend payments d. personal savings.

Economics

One explanation for the growth in the U.S. economy over the last 100 years is:

A. a large increase in human capital. B. a rapid decline in human capital. C. a small, incremental increase in human capital. D. Human capital was not the cause of growth in the United States over the last 100 years.

Economics