To find the quantity of private saving in a closed economy, we can use the following formula:
\[ \text{Private Saving} = Y - T - C \]
where:
- \( Y \) is the GDP,
- \( T \) is taxes (net of transfers),
- \( C \) is consumer spending.
From the information given in Table 26-1:
- GDP (\( Y \)) = $8.7 trillion
- Taxes Minus Transfers (\( T \)) = $1.0 trillion
- Consumer Spending (\( C \)) = $6.1 trillion
Now we can calculate private saving:
\[ \text{Private Saving} = 8.7 - 1.0 - 6.1 \] \[ \text{Private Saving} = 8.7 - 7.1 \] \[ \text{Private Saving} = 1.6 \text{ trillion} \]
Thus, the quantity of private saving is:
d. $1.6 trillion.