Which of the following restrictions implies that private saving and investment are equal for a closed economy?
a. Consumption and private saving are equal.
b. The economy's government is running neither a surplus nor a deficit.
c. Private saving and public saving are both zero.
d. No restriction is necessary; private saving and investment are equal for all closed economies.
b
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The short-run supply curve of the perfectly competitive industry is found by summing the
A. AC curves of the individual firms in the industry. B. AVC curves of the individual firms in the industry. C. MC curves above AVC of the individual firms in the industry. D. There is no short-run supply curve in a competitive industry.
In a long-run perfectly competitive equilibrium,
a. marginal cost and marginal revenue are the greatest distance apart b. barriers to entry are established by entrenched firms c. the typical firm will earn an economic profit d. average total cost is rising e. price and marginal cost are equal to minimum short-run and long-run average total cost
Fiat money is backed by gold
Indicate whether the statement is true or false
In an economy, spending by households for the purchase of goods and services is called investment
a. True b. False Indicate whether the statement is true or false