If an Economy Is Closed and If It Has No

question 611

Multiple Choice

If an economy is closed and if it has no government, then

• A)national saving = private saving.
• B)total income = consumption + investment.
• C)saving = total income - consumption.
• D)All of the above are correct.

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Definitions:

Equity Securities

Financial instruments that signify an ownership position in a publicly-traded corporation, such as stocks.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other securities.

Preferred Shares

A class of ownership in a corporation that provides a higher claim on assets and earnings than common shares; dividends must be paid on these shares before any can be distributed to common shareholders.