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In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)
Simple Interest
Interest calculated only on the principal amount, not on the interest that has been added over time.
Repay
The act of paying back money that was borrowed from a person or institution.
Term Deposit
A fixed-term investment held at a financial institution where money can be invested for a certain period of time, earning a predetermined interest rate.
Simple Interest
Interest measured solely on the primary amount, not factoring in compounding.
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