In a Closed Economy, What Is Public Saving

question 203

Multiple Choice

In a closed economy, what is public saving?

• A) the amount of income that households have left after paying for 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 total income minus total expenditure

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Definitions:

Recorded By Credits

Transactions that increase liabilities, equity, or revenue, or decrease assets or expenses, reflected in the accounting records.

Increases

A rise in the value or quantity of something, such as assets, revenue, or profits.

Recorded By Debits

Transactions in accounting that increase assets or expenses and decrease liabilities, equity, and revenue, captured on the left side of an account.

Decreases

A reduction in the quantity, level, or intensity of something, such as expenses, assets, or liabilities.