Question:
Gross National Savings can be calculated by deducting which of the following from the Gross National Disposable Income?
(1) Taxes
(2) Final consumption expenditure
(3) Net exports
(4) Gross Domestic Capital Formation
(5) Transfer payments
Correct Answer:
(2)
Answer Explanation:
Gross National Savings is defined as the portion of Gross National Disposable Income (GNDI) that is not used for final consumption. Therefore, Savings = GNDI – Final Consumption Expenditure.
Topic: National Income Year: 2023
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