In a closed economy, public saving is the amount of
A)income that households have left after paying for taxes and consumption.
B)income that businesses have left after paying for the factors of production.
C)tax revenue that the government has left after paying for its spending.
D)spending that the government undertakes in excess of the taxes it collects.

Question

Quizplus · Accepted Answer

Public saving in a closed economy refers to the tax revenue that the government has left after it has covered all its spending. This is essentially the government's budget surplus.

In a Closed Economy, Public Saving Is the Amount of