Which of the following best represents household saving?
A) T - (G + TR)
B) (Y - TR) + I
C) (Y - C - G - NX)
D) (Y + TR - T) + C

Question

Quizplus · Accepted Answer

Household saving is represented by disposable income (Y + TR) less consumption expenditure (C) and taxes paid (T). Therefore, D represents saving as (Y + TR - T) + C, where disposable income is (Y + TR - T), and consumption expenditure is subtracted from it to arrive at saving.

Which of the Following Best Represents Household Saving