Savings by consumers equals:

A. Income plus net taxes minus consumer spending.
B. Income minus net taxes minus consumer spending.
C. Income minus net taxes plus consumer spending.
D. Government spending minus net taxes.
E. Government spending plus net taxes.

Question

11-01-2025
Business

High School

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Savings by consumers equals:

A. Income plus net taxes minus consumer spending.
B. Income minus net taxes minus consumer spending.
C. Income minus net taxes plus consumer spending.
D. Government spending minus net taxes.
E. Government spending plus net taxes.

Answer :

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namsha24 namsha24 · Answer 1 · 2024-02-10T13:28:37-05:00

The savings by consumers equals their income minus net taxes and consumer spending, Thus, the correct option from the student's question is b. income minus net taxes minus consumer spending.

The original question posed by the student is how to calculate savings by consumers. According to the national income identity and various equations related to savings and government borrowing, savings by consumers is determined by the income left after consumption and government purchases (which includes taxes and transfers) have been deducted. Therefore, the correct answer is: Savings by consumers equals income minus net taxes minus consumer spending.

In mathematical terms, this can be represented as:

Private savings \\u2013 government borrowing = income \\u2013 taxes + transfers \\u2013 consumption

National savings = private savings + government surplus (where government surplus equals minus the government deficit)

Thus, the correct option from the student's question is b. income minus net taxes minus consumer spending.

Savings by consumers equals:A. Income plus net taxes minus consumer spending. B. Income minus net taxes minus consumer spending. C. Income minus net taxes plus consumer spending. D. Government spending minus net taxes. E. Government spending plus net taxes.

Answer :

Other Questions

Savings by consumers equals:

A. Income plus net taxes minus consumer spending.
B. Income minus net taxes minus consumer spending.
C. Income minus net taxes plus consumer spending.
D. Government spending minus net taxes.
E. Government spending plus net taxes.