The private sector surplus or deficit equals
A) saving minus investment.
B) net taxes minus government purchases.
C) investment minus saving.
D) government purchases minus net taxes.

Question

Quizplus · Accepted Answer

The private sector surplus or deficit equals saving minus investment. This is because when the private sector saves more than it invests, it runs a surplus; conversely, when it invests more than it saves, it runs a deficit.

The Private Sector Surplus or Deficit Equals