National savings (S) = private savings + public savings
Private savings is calculated by subtracting consumption or C from disposable income, which is represented as (Y-T), with Y being the GDP (Gross Domestic Product) and T being tax payments. The expression (T-G) refers to revenue received by the government through taxes less government expenses. This is defined as public savings.
S = (Y-T-C) + (T-G)
Private savings = Y-T-C
given that Y=10,000, T=1,500 and C=6,000
10,000 - 1,500 - 6,000 = 2,500
Private savings = 2,500
Hope this helps!
if T is less than G tpublic svgs is negative, therefore represents a budget deficit
is this correct?
what about I=3300-100r; r=real interest. do I have to account for this in my calculation?