Where Y is GDP, C is consumption, T is net taxes and G is government spending, if there is no international trade, then public saving equals:
A)G - T
B)Y - G
C)Y + T - G
D)Y - T

Question

Quizplus · Accepted Answer

If there is no international trade, public saving equals government spending minus net taxes (A), as there are no imports or exports to consider. Option B is the equation for private saving, not public saving. Option C is the equation for national saving. Option D is the equation for disposable income.

Where Y Is GDP, C Is Consumption, T Is Net