In a Closed Economy, National Saving Equals

question 41

Multiple Choice

In a closed economy, national saving equals

• A)C + I + G.
• B)Y - C - G.
• C)Y - C - I.
• D)Y - G - I.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Shut Down

A short-run decision by a firm to cease production when market conditions make continued operation unprofitable.

Market Price

The existing trade value at which an asset or service can be acquired or disposed of.

Short Run

A period in which at least one input (e.g., capital) is fixed and cannot be changed, affecting a firm's capacity to adjust production levels.