In a Closed Economy, What Is Private Saving

question 143

Multiple Choice

In a closed economy, what is private saving?

• 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) the amount of tax revenue that the government has left after paying for transfers

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Definitions:

Capital Expenditures

Money invested by an enterprise to procure, upgrade, and preserve solid assets, such as premises, industrial structures, or equipment.

Fixed Asset Turnover Ratio

A financial metric that measures a company's ability to generate net sales from fixed assets like property, plant, and equipment.

Cost Basis

The original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions.

Appraisal Value

An estimation of a property's market value based on an appraiser’s knowledge, experience, and analysis of the property.