Question

National saving a. is the total income in the economy that remains after paying for consumption. b. is the total income in the economy that remains after paying for consumption and government purchases. c. is always greater than investment for a closed economy. d. is equal to private saving minus public saving.

Answer 1

Answer:

The correct answer is option b.

Explanation:

National saving is the portion of total income which is left after consumption and government spending. It is the sum of total private saving and public saving.

It is that portion of national income or GDP which is not consumed by the public and spent by the government.

It can be expressed as:

National saving = Y - C - G