X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. Which of the following equations represents the private sector balance?
A) X - M
B) T - G
C) S - I
D) C + S + T

Question

Quizplus · Accepted Answer

The private sector balance is represented by the difference between savings (S) and investment (I), which reflects the net financial position of the private sector in an economy.

X Is Exports, M Is Imports, T Is Net Taxes