In a closed economy, what remains after paying for consumption and government purchases?
A) national disposable income
B) national saving
C) public saving
D) private saving

Question

Quizplus · Accepted Answer

After paying for consumption and government purchases, the remaining amount is national income minus taxes (T). National saving (S) is the portion of national income that is not consumed and is also referred to as disposable income (Yd) minus consumption (C) and government purchases (G). Therefore, national saving (S) is the amount left over after paying for consumption and government purchases.

In a Closed Economy, What Remains After Paying for Consumption