Moderate

National Saving (or just saving) is equal to ?

Correct answer: C. private saving + public saving

  • A. none of these answers
  • B. investment + consumption expenditures
  • C. private saving + public saving
  • D. GDP government purchases

Explanation

National saving has two components: private saving by households and firms, plus public saving, which is tax revenue minus government spending. Therefore, national saving equals private saving plus public saving.

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About Macroeconomics

The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

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