Scenario 26-2

Multiple Choice

Scenario 26-2.Assume the following information for an imaginary,closed economy.
GDP = $5 trillion;consumption = $3.1 trillion;
government purchases = $0.7 trillion;and taxes = $0.9 trillion.
-Refer to Scenario 26-2.For this economy,public saving is equal to

A) $0.2 trillion and the government is running a budget surplus of $0.2 trillion.
B) $0.2 trillion and the government is running a budget deficit of $0.2 trillion.
C) -$0.2 trillion and the government is running a budget deficit of $0.2 trillion.
D) -$0.2 trillion and the government is running a budget surplus of $0.2 trillion.