In a closed economy, what does the difference between the tax revenue and government purchases, (T − G), represent?
A)National saving
B)Investment
C)Private saving
D)Public saving

Question

Quizplus · Accepted Answer

The difference between tax revenue (T) and government purchases (G) in a closed economy represents public saving. This is because when the government collects more in taxes than it spends, the surplus funds are considered public savings.

In a Closed Economy, What Does the Difference Between the Tax