In a closed economy, public saving is the amount of

Question

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. spending that the government undertakes in excess of the taxes it collects.
d. tax revenue that the government has left after paying for its spending.

Answer 1

In a closed economy, public saving refers to the amount of tax revenue that the government has left after paying for its spending. Therefore, the correct answer is:

d. tax revenue that the government has left after paying for its spending.