In a closed economy, what is private saving?
A)the amount of income that households have left after paying for their taxes and consumption
B)the amount of income that businesses have left after paying for the factors of production
C)the amount of tax revenue that the government has left after paying for its spending
D)always equal to investment

Question

Quizplus · Accepted Answer

Private saving is the amount of income that households have leftover after paying for their taxes and consumption. It is the amount of income that is not spent on immediate consumption and is instead saved for future use or investment.

In a Closed Economy, What Is Private Saving