Suppose that GDP is equal to 1000 national saving is equal t

Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Private savings must equal...?

Solution

Private savings must equal to 250.

Explanation: Private savings = National saving - Budget balance

                    PS = 200 - (-50) = 250