An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector)will:
A)increase private saving.
B)decrease public saving.
C)increase public saving.
D)reduce investment in new capital equipment.

Question

Quizplus · Accepted Answer

If governments raise tax revenues but do not spend the revenues, then public savings increases.

An Increase in Net Taxes (Taxes Paid by the Private