Which of the following equations describes government saving?
A)T - TR - INT - G
B)T - TR - INT + G
C)T - TR + INT - G
D)T - TR + INT + G

Question

Quizplus · Accepted Answer

Government saving is calculated as the difference between total government revenues (T) and total government spending, excluding interest payments on the debt (INT). Government spending includes transfer payments (TR) and government purchases of goods and services (G). Therefore, the correct formula is T - TR - INT - G.

Which of the Following Equations Describes Government Saving