Questions: Government saving equals A government purchases of goods and services plus transfer payments less taxes B taxes less government expenditures C taxes D government purchases of goods and services less taxes

The answer is B taxes less government expenditures

This option describes a scenario where government expenditures are subtracted from taxes, but it incorrectly includes transfer payments as part of the calculation. Transfer payments are not considered part of government saving; they are part of government expenditures.

This option correctly defines government saving. Government saving is calculated as the difference between the taxes collected by the government and its total expenditures, which include both purchases of goods and services and transfer payments. When taxes exceed expenditures, the government is saving; when expenditures exceed taxes, the government is dissaving.

This option only considers the revenue side of the government's budget and does not account for expenditures. Therefore, it does not accurately represent government saving.

This option incorrectly suggests that government saving is calculated by subtracting taxes from government purchases of goods and services. This does not account for the full range of government expenditures, such as transfer payments, and therefore does not accurately represent government saving.