What happens to national saving when the government runs a budget ...

[crazycityslicker]

What happens to national saving when the government runs a budget surplus? What happens to national saving when the government runs a budget deficit?
 
  What will be an ideal response?

Question 2

Which is likely to be more elastic: the demand for orange juice or the demand for a particular brand of orange juice? Explain.
 
  What will be an ideal response?

[catron30]

Answer to Question 1

National saving increases when the government runs a budget surplus unless private saving decreases by the amount of the budget surplus, which is unlikely. National saving decreases when the government runs a budget deficit unless private saving increases by the amount of the budget deficit, which is also unlikely.

Answer to Question 2

The demand for a particular brand of orange juice will be more elastic. There are many close substitutes (other brands). There are fewer substitutes for orange juice.

[crazycityslicker]

YES! Correct, THANKS for helping me on my review

[juliaf]

TYSM