Consumer Saving and Business Investment Are the Primary Sources of Imbalance

question 142

True/False

Consumer saving and business investment are the primary sources of imbalance in a wholly private and closed economy (that is,if there is no government and no foreign trade).
In a wholly private and closed economy,there is no government or trade sector; if saving does not equal investment,there must be a recessionary or inflationary GDP gap.

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Definitions:

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A hierarchical structure of all matter and life, believed in medieval Christianity to have been decreed by God.