Final answer:
The household sector saving cannot be calculated with the provided information as we are missing the consumption value. Savings is typically income minus taxes and consumption, but we are not given the income or consumption data directly. We could calculate income if we had consumption, but without it, we cannot find the precise savings amount.
Step-by-step explanation:
The question asks us to calculate the household sector savings based on given economic indicators. To find savings, we can use the following identity which is derived from the National Income and Product Accounts (NIPA): Savings (S) = Income (Y) - Taxes (T) - Consumption (C).
However, we are not given Income (Y) directly; we can find it by rearranging the components of the GDP equation: Y = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports.
From the information given, we can assume that all income that is not consumed, taxed, or saved, is spent on investment, government spending, and net exports. Therefore, we can calculate the income (Y) as follows: Y = C + I + G + (X - M). Since we are not given Consumption (C), we have to find it from Y = S + T + C. Therefore, we rearrange to find C = Y - S - T.
Given the equations and the data: Investment (I) is $30 billion, Exports (X) are $20 billion, Imports (M) are $50 billion, Government Spending (G) is $80 billion, and Taxes (T) are $60 billion, we can find the household sector saving by substituting the values into the savings identity.
Let's plug the given values into the equation for Income (Y):
Y = I + G + (X - M)
Y = $30 billion + $80 billion + ($20 billion - $50 billion)
Y = $80 billion (since $20 billion - $50 billion is -$30 billion, which is subtracted from the sum of I and G)
Now that we have the Income (Y), we can find Consumption (C) using: C = Y - S - T.
Since Savings (S) is what we are solving for, we rearrange the equation to find S:
S = Y - T - C
Without the value for Consumption (C) provided, we reach an impasse; we cannot calculate the exact savings without this piece of information. It seems we do not have all the necessary data to answer the student's question.