Which of the Following Statements Is Correct for a Private

question 142

Multiple Choice

Which of the following statements is correct for a private closed economy?

• A)Saving equals planned investment only at the equilibrium level of domestic output.
• B)All levels of domestic output where planned investment exceeds saving will be too high for equilibrium.
• C)Planned and actual investment are identical at all possible levels of domestic output.
• D)Saving equals actual investment only at the equilibrium level of domestic output.

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Definitions:

Profitable Level

The point at which a company's revenues exceed its costs, leading to financial gain or profit.

Minimal Losses

The smallest amount of losses that can be incurred, typically used in the context of minimizing financial or operational losses.

Marginal Revenue

The increase in earnings resulting from the sale of one extra good or service.

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.