In the equation S = Y - C,in order to interpret Y as disposable income,it is necessary to interpret S as ________ saving.
A)private
B)national
C)government
D)business

Question

Quizplus · Accepted Answer

In the context of this equation, S represents savings, and Y represents income. When interpreting Y as disposable income (the income available to households after taxes and transfers), S must be interpreted as private saving, which is the portion of disposable income that households choose to save rather than consume.

In the Equation S = Y - C,in Order to Interpret