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:

Elements

Fundamental components or constituents of something, often referred to in the context of abstract concepts, compounds, or a set of parts.

Qualitative Characteristics

These are the attributes that make the information provided in financial statements useful to users.

Understandability

A characteristic of financial information that makes it comprehensible to those with a reasonable knowledge of business and economic activities.

Decision Usefulness

A principle in accounting that information should help users make decisions regarding their investments, credit, and similar considerations.