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Answer :
Private saving is equal to disposable income minus consumption. The correct answer is A.
The formula for calculating private saving can be represented as follows:
Private saving = Disposable income - Consumption
Where, Disposable income = Income - Taxes
Reasoning: Private saving is a component of national savings.
It is the amount of income that is not spent on consumption.
Instead,
it is used to increase the stock of assets owned by individuals such as stocks, bonds, and real estate, among others.
It includes expenses on necessities like food and housing, as well as discretionary spending on entertainment and travel.
Finally, spending refers to the amount of money that is used to purchase goods and services.
This can be broken down into different categories such as consumer spending, government spending, and investment spending.
The correct answer is A.
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