Question

the false statement about national saving is: a. national saving is the sum of private saving and government saving. b. when the government runs a fiscal surplus, government saving rises. c. tax hike without a change in government spending raises national saving. d. government spending cut without a change in taxes decrease national saving

Answer 1

The false statement about national saving is that when the government runs a fiscal surplus, government saving rises.

Step-by-step explanation:

The false statement about national saving is: b. when the government runs a fiscal surplus, government saving rises.

National savings is the sum of private saving and government saving. When the government runs a fiscal surplus, it means that its tax revenues exceed its spending. In this case, the government saving increases, not decrease. Therefore, statement b is false.

Examples of true statements about national saving are:

• a. National saving is the sum of private saving and government saving.
• c. A tax hike without a change in government spending raises national saving.
• d. A government spending cut without a change in taxes decreases national saving.