In a closed economy, private saving is
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)always equal to investment.

Question

Quizplus · Accepted Answer

Private saving in a closed economy is defined as the amount of income that households have left after they have paid their taxes and consumed goods and services. This saving can then be used for investment within the economy.

In a Closed Economy, Private Saving Is