Answer :
Saving equals income minus consumption expenditure minus net taxes.
Option B
Explanation:
Saving is what remains of income following consumption on expenditures and net taxes paid.
The GDP is the intrinsic value of all commodities produced within a particular country within a certain period of time. In order to measure the size of an industry and the rate of growth, GDP offers an economic snapshot of a region.
The total demand is four: consumption, production, government expenditure, and net exports.
For a variety of reasons, demand may adjust, including economic fluctuations, taxation, future income aspirations, and changes in wealth levels.
Final answer:
The correct definition of 'saving' in economics is 'income minus consumption expenditure minus net taxes'. This defines saving as what's left of your income after you've made all your necessary and optional purchases and paid your taxes.
Explanation:
In economics, the correct definition of 'saving' is typically referred as option B. Saving equals income minus consumption expenditure minus net taxes. This definition represents one of the fundamental relationships in macroeconomics. To understand this, you can think of saving as what's left of your income after you've paid your taxes and bought everything you need and want. To calculate saving, firstly you take your total income, then subtract how much you spent on consumption, and finally subtract the net taxes you paid as well.
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