Using Equations for Public and Private Saving,show That Saving Must

question 50

Essay

Using equations for public and private saving,show that saving must equal investment in a closed economy.Begin with the expression for total saving in the economy.

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Definitions:

Relative Size

A perceptual cue that allows the determination of the size of an object in comparison to another object of known size.

Interposition

A visual cue in which an object that blocks part of another object is perceived as being closer to the observer.

Continuity

The state or quality of being continuous, unbroken, or consistent over time.

Similarity

The state of being alike or sharing common features.