In a Closed Economy, Public Saving Is Equal to Which

question 185

Multiple Choice

In a closed economy, public saving is equal to which of the following? (Y = GDP, , , T = Taxes, and TR = Transfers)

• A)Y - C - T
• B)Y - G - T
• C)T - G - TR
• D)Y - C - T + TR
• E)C + I + G

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Definitions:

Original Costs

The initial amount spent to acquire an asset, including purchase price and all expenses incurred to bring the asset to its intended use.

Written Agreement

A formal contract which outlines the terms and conditions between parties in written form.

Income and Losses

A financial term encompassing the total earnings (income) and deductions (losses) affecting the net profitability of a business over a specific period.

Capital Balances

The amount of money that each partner has invested in a business, which can change over time with profits and losses.