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U812B4
Lv 4
U812B4 asked in Social ScienceEconomics · 1 decade ago

What is Private Savings assuming the economy is open?

Exp: $125M

Im: $80M

Sg= $-200M

I = $350M

Calculate private savings...

1 Answer

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  • Yuri Fadeev / jurasea@yahoo.com
    Lv 7
    1 decade ago
    Favorite Answer

    For simplest open economy:

    Y=C+I+G+Ex-Im

    Y-C-G=S

    Y-C-G=I+Ex-Im

    S=I+Ex-Im

    S=350+125-80=395

    S=Sp+Sg=Sp-200

    Sp-200=395

    Sp=395+200=595M

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