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.

---

Definitions:

Financial Market

A marketplace where buyers and sellers engage in trading financial instruments such as stocks, bonds, commodities, and currencies.

OTC Market

Over-the-counter market where securities are traded directly between parties without the oversight of an exchange.

Auction Market

A market where buyers and sellers submit bids and offers to buy or sell goods and services, with transactions occurring at prices determined through the auction process.

Electronic Market

An online platform where buyers and sellers can exchange goods and services without the need for a physical marketplace.