In a Closed Economy, How Does National Saving Compare with Investment

question 125

Multiple Choice

In a closed economy, how does national saving compare with investment?

• A) National saving is usually greater than investment.
• B) National saving is equal to investment.
• C) National saving is usually less than investment because of the leakage of taxes.
• D) National saving is usually less than investment.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often at the expense of understanding or respecting other cultures.

Prejudice

A preconceived opinion that is not based on reason or actual experience.

Cultural Concepts

are the shared beliefs, norms, values, and practices that are learned and transmitted within a society, shaping its members' perspectives and behaviors.

Assertiveness

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication.