Public saving is positive when:

A. the government's budget is balanced.
B. there is a government budget surplus.
C. after-tax income of households and businesses is less than consumption expenditures.
D. after-tax income of households and businesses is greater than consumption expenditures.

Answer: B

Economics

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Given a national income of $800 billion, an MPC of 0.8, and autonomous consumption of $60 billion, what is the level of consumption spending?

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