Question

In a closed economy, what remains after paying for consumption and government purchases is:________

a. public saving.
b. private saving.
c. national disposable income.
d. national saving.

Answer 1

Answer: d. national saving.

Step-by-step explanation:

In a closed economy, GDP is calculated by adding Consumption, Investment and Government purchases. The investment in this instance can be thought of as National Saving.

National saving is the difference between the income in the country and the consumption and government purchases. It represent what households and the government save up from their income sources which can be used for investment.