Question

Private savings is equal to: a. After-tax income less consumption b. Taxes less government spending on goods and services c. The total amount of savings accounts plus stock and bonds owned by households

Answer 1

The correct answer is letter "A": After-tax income less consumption.

Step-by-step explanation:

When disposable income or after-tax income is deducted from the households' consumption the result is considered the nation's private savings. The result can sometimes be negative if consumption in a country is higher than the income households perceive. However, in front of those situations, the government tends to intervene to balance the economy.