1. Gondor is a closed economy, where consumption totals $3 billion, tax payments are $300 million, government spending is $1 billion, and GDP is $5 billion. Private saving amountsto

a.	$1.7 billion and Gondor's government runs a budget deficit.
b.	$1.7 billion and Gondor's government runs a budget surplus.
c.	$1 billion and Gondor's government runs a budget deficit.
d.	$1 billion and Gondor's government runs a budget surplus