Solve the Equation. = __________

question 71

Short Answer

Solve the equation. = __________

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Definitions:

Private Saving

The portion of individual or household income that is not spent on consumption but saved for future use.

Private Investment

The expenditure by businesses on capital goods, such as machinery and buildings, and changes in inventories.

Crowding-Out Effect

A situation where increased government spending leads to a reduction in private sector investment.

Fiscal Policy

The use of government spending and taxation to influence the economy.