In the equation $( Y - T - C ) + ( T - G ) + ( \mathrm { IM } - \mathrm { EX } ) = I$ , the left-hand side is called:
A) investment
B) private saving
C) total saving
D) government debt
E) public saving

Question

Quizplus · Accepted Answer

The left-hand side of the equation represents total saving, which includes private saving $(Y - T - C)$, public saving $(T - G)$, and the net exports $(\mathrm{IM} - \mathrm{EX})$.

In the Equation (Y−T−C)+(T−G)+(IM−EX)=I( Y - T - C ) + ( T - G ) + ( \mathrm { IM } - \mathrm { EX } ) = I(Y−T−C)+(T−G)+(IM−EX)=I

In the Equation $( Y - T - C ) + ( T - G ) + ( \mathrm { IM } - \mathrm { EX } ) = I$