In a closed economy, public saving is the amount of
a. income that households have left after paying for taxes and consumption.
b. income that businesses have left after paying for the factors of production.
c. tax revenue that the government has left after paying for its spending.
d. spending that the government undertakes in excess of the taxes it collects.
c
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Which of the following statements is true of a flexible exchange rate system?
A) Market forces tend to undervalue a currency over time. B) Market forces tend to overvalue a currency over time. C) Market forces do not affect exchange rates between different currencies. D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.
During the time period of 1981-1983 what dramatic world issue happened?
A) political instability, insecure property rights B) stock market crashed C) world wide hyperinflation D) the collapse of the U.S. mortgages market E) A world economic recession caused developing countries to not be able to make payments on foreign loans, in turn causing a universal default.