The term government saving is defined as:

Question

Quizplus · Accepted Answer

Government saving is the difference between tax revenue and government purchases. This is because government saving is the portion of the government's revenue that is not used for consumption or investment, but rather is saved for future use. Option A is incorrect because taxes are already deducted from government saving; therefore, it cannot be subtracted again. Option B is incorrect because it refers to household saving, not government saving. Option D is incorrect because it refers to foreign investment, which is not related to government saving.

The Term Government Saving Is Defined As