To State That National Saving Is Equal to Investment, for a Closed

question 146

True/False

To state that national saving is equal to investment, for a closed economy, is to state an accounting identity.

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Definitions:

Deadweight Loss

A loss in economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Tax

a financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Tax Avoidance

The legal practice of arranging one's financial affairs to minimize tax liability within the law.