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) the amount of tax revenue that the government has left after paying for transfers

Question

Quizplus · Accepted Answer

Private saving is the amount of income that households have left after paying for their taxes and consumption, i.e. the difference between disposable income and consumption expenditures.

In a Closed Economy, What Is Private Saving