Using the information given below for the fictitious country "Alpha," find national saving, private saving, public saving, and the national saving rate. Household saving =80 Business saving =430 Government purchases of goods and services =340 Government transfers and interest payments =100 Tax collections =500 GDP =2,500 Instructions: Enter your response for the national saving rate rounded to one decimal place. If you are entering any negative numbers, be sure to include a (-) in front of those numbers. National saving & Private saving & Public saving & National saving square & square & square & square

## Step 1: Calculate Private Saving### Private saving is the sum of household saving and business saving. Given that household saving is and business saving is , we calculate private saving as follows: ## Step 2: Calculate Public Saving### Public saving is calculated as the difference between tax collections and the sum of government purchases and government transfers/interest payments. Given that tax collections are , government purchases are , and government transfers and interest payments are , we calculate public saving as follows: ## Step 3: Calculate National Saving### National saving is the sum of private saving and public saving. Using the values calculated in Steps 1 and 2, we find: ## Step 4: Calculate National Saving Rate### The national saving rate is calculated as the ratio of national saving to GDP, expressed as a percentage. Given that GDP is , we calculate the national saving rate as follows: