In a Closed Economy, National Saving Can Be Expressed by the Equation

question 14

Multiple Choice

In a closed economy, national saving can be expressed by the equation S = (Y - T - C) + (T - G) . What does (Y - T - C) represent?

• A) Private saving
• B) Government tax revenue
• C) Public saving
• D) Investment

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Definitions:

Brazilian Real

The official currency of Brazil, abbreviated as BRL, and made up of 100 centavos.

U.S. Dollar

The currency of the United States, widely used globally as a standard of exchange and a reserve currency.

Merchandise Valued

The estimated worth or price of goods that are bought and sold in business transactions.

British Pound

The currency of the United Kingdom, also known formally as the pound sterling, used throughout the UK and its territories.