Savings for an economy is equal to:

Question

Quizplus · Accepted Answer

Savings for an economy is defined as the sum of private savings and public savings. Private savings is the amount of income that households save or do not spend on consumption, while public savings is the difference between government revenue and government expenditure. Therefore, the correct equation for savings in an economy is:

Savings = Private Savings + Public Savings

Option A and B are incorrect because they are subtracting one type of savings from the other, which is not the correct way to calculate savings for an economy. Option D is incorrect because it represents the difference between investment and net exports, which is not related to savings.

Savings for an Economy Is Equal To