The Private savings and Government savings.

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Chapter 8, Problem 2CQQ

To determine

The Private savings and Government savings.

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Ifthe government collects more in tax revenue than it spends, and households consume more than they get in after-tax income,then a.private and public saving are both positive. b.private and public saving are both negative. c.privatesaving is positive,but public saving is negative. d.private saving is negative,but public saving is positive.

If the government collects more in tax revenue thanit spends, and households consume more than theyget in after-tax income, thena. private saving and public saving are both positive.b. private saving and public saving are bothnegative.c. private saving is positive, but public saving isnegative.d. private saving is negative, but public saving ispositive.

If Congress instituted an investment tax credit, the interest rate would Select one: a.rise and saving would rise. b.fall and saving would fall. c.fall and saving would rise. d.rise and saving would fall.