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:

Ironclad Ships

Armored naval vessels introduced in the mid-19th century, marking a significant advancement in naval warfare technology, notable for their role in the American Civil War.

USS Monitor

A significant ironclad warship of the Union during the American Civil War, renowned for its pivotal role in the Battle of Hampton Roads in 1862, marking a revolution in naval warfare.

CSS Virginia

A historic ironclad warship of the Confederate States Navy in the American Civil War, notably partaking in the Battle of Hampton Roads in 1862.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States, founded by Clara Barton in 1881.