In a Closed Economy,if Y and T Remained the Same,but

question 41

Multiple Choice

In a closed economy,if Y and T remained the same,but G rose and C fell but by less than the rise in G,what would happen to public and national saving?

• A)public and national saving would rise
• B)public and national saving would fall
• C)public saving would rise and national saving would fall
• D)public saving would fall and national saving would rise

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Definitions:

Comparative Advantage

The capacity of a being to generate a product or offer a service at a reduced opportunity cost in comparison to another.

Cars

motor vehicles with wheels designed primarily for the transport of people rather than goods.

Lumber

Timber that has undergone transformation into boards and beams, representing an intermediate phase in the creation of wooden materials.

Comparative Advantage

Comparative advantage refers to the ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.