In a given year, a country's GDP = $3843, net factor payments from abroad = $191, taxes = $893, transfers received from the government = $422, interest payments on the government's debt = $366, consumption = $3661, and government purchases = $338
Calculate the values of private saving, government saving, and national saving.
Private saving = Y + NFP - T + TR + INT - C = $3843 + $191 - $893 + $422 + $366 - $3661 = $268. Government saving = T -TR - INT - G = $893 - $422 - $366 - $338 = -$233. National saving = Y + NFP - C - G = $3843 + $191 - $3661 - $338 = $35.
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What are the three ways that the government redistributes income in the United States? Briefly discuss each
What will be an ideal response?