Consumer Saving and Business Investment Are the Primary Sources of Imbalance

question 54

True/False

Consumer saving and business investment are the primary sources of imbalance in a wholly private and closed economy (that is,if there is no government and no foreign trade).

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Definitions:

Vertical Marketing Systems

A coordinated approach to distribution and marketing designed to ensure that products or services flow smoothly from the producer to the consumer with the involvement of various intermediaries.

Channel Economies

The cost savings and efficiency gains derived from using effective distribution channels to deliver products or services to consumers.

Centrally Coordinated

Managed or organized from a single, central point, often referring to administrative or operational activities.

Contractual Vertical Marketing System

A coordinated marketing system among businesses at different levels of the supply chain, established through contracts to maximize efficiency and profitability.