Consider the Expressions T − G and Y − T

question 195

Multiple Choice

Consider the expressions T − G and Y − T − C. Which of the following statements is correct?

• A)Each one of these is equal to national saving.
• B)Each one of these is equal to public saving.
• C)The first of these is private saving; the second one is public saving.
• D)The first of these is public saving; the second one is private saving.

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Definitions:

Price

The money total set, required, or given as remuneration for something.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices remain stable.

Market

A place or system where buyers and sellers interact to trade goods, services, or contracts, allowing for the exchange of resources.