Let Y = total income; C = consumption; G = government purchases; T = taxes; TR = transfer payments. Public saving is defined as:

Question

Quizplus · Accepted Answer

Public saving is equal to government revenue minus government spending (excluding transfer payments). In other words, it is given by T - G. Adding transfer payments (TR) to this equation gives: T - G + TR. Therefore, the correct answer is option C.

Let Y = Total Income; C = Consumption; G =