In a Closed Economy, If Y, C, and T Remained

question 141

Multiple Choice

In a closed economy, if Y, C, and T remained the same, a decrease in G would

• A)reduce private saving and public saving.
• B)increase private saving but not public saving.
• C)increase public saving but not private saving.
• D)increase neither private nor public saving.

---

Definitions:

Lawrence Peter

A Canadian educator and "hierarchiologist," best known for formulating the Peter Principle, which suggests that people in a hierarchy tend to rise to their "level of incompetence."

Successful Transition

The process of smoothly moving from one state or condition to another in a way that achieves intended outcomes.

Delegate Tasks

The act of assigning responsibility and authority to someone else to complete specific activities while retaining the ultimate accountability for their outcome.

Subordinate

An individual who is lower in rank or position, typically subject to the authority or control of another within an organizational hierarchy.