in a closed economy, what does (y - t - c) represent
Y = C + I + G + NX where Y is total income. 5.4. National saving (S) in a closed economy is equal to total income (Y) minus consumption by households (C) and government purchases (G). S = Y - C - G Adding and subtracting a value equal to government taxes (T) on the right side leaves the equation unchanged. Rearranging terms yields S = (Y - T - C) + (T - G) What does (Y - T - C) represent in the equation? A. Government saving B. Private saving C. Investment D. Government purchases