In a closed economy, what does the difference between the tax revenue and government purchases, (T − G) , represent?

A) National saving
B) Investment
C) Private saving
D) Public saving

Public Saving

The portion of national saving that is accumulated by the government sector, often reflected as the difference between government revenues and expenditures.

National Saving

The total amount of savings generated within a country, which is the sum of private savings by households and businesses plus public savings from the government’s budget.

Tax Revenue

Tax revenue is the income gained by governments through taxation, a primary source of income used to fund public services and obligations.