In a Closed Economy,if Y Remained the Same,but G Rose,T

question 72

Multiple Choice

In a closed economy,if Y remained the same,but G rose,T rose by the same amount as G,and C fell but by less than the increase in T,what would happen to private and national saving?

• A)national saving would fall and private saving would rise
• B)national saving would rise and private saving would fall
• C)both national saving and private saving would fall
• D)None of the above is correct.

---

Definitions:

Electrostatic Attraction

The force of attraction between oppositely charged particles.

Inversely

A term describing a relationship between two variables whereby they move in opposite directions; as one increases, the other decreases.

Coulomb

A quantity of electrons equal to 6.253 x 10^18.

Amperage

The strength of an electric current measured in amperes, indicating the flow rate of electric charge through a conductor.