Answer:
The amount of savings is $3.5 trillion.
Explanation:
This can be calculated using the following saving is equal to invstment (S = I) formula for a closed economy:
Savings = Y - T - C ........................ (1)
Where;
Y = GDP = $12 trillion
C = consumption = $8 trillion
T = taxes = $0.5 trillion
Substituting thee values into equation (1), we have:
Savings = $12 trillion - $8 trillion - $0.5 trillion
Savings = $3.5 trillion
Therefore, the amount of savings is $3.5 trillion.
