In a Closed Economy,public Saving Plus Private Saving Is Equal

question 152

Multiple Choice

In a closed economy,public saving plus private saving is equal to

• A)investment.
• B)taxes minus transfers.
• C)the budget surplus.
• D)the budget deficit.

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Definitions:

Business Risk

The equity risk that comes from the nature of the firm’s operating activities.

Financial Policy

Strategic decisions regarding a company's financial management, including borrowing, spending, and investing.

Target Capital Structure

The optimal mix of debt, equity, and other financing sources that a company aims to maintain to finance its operations and growth.

Total Value

The complete worth of an asset, business, or investment, taking into account all forms of value including monetary, strategic, and intrinsic.