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

question 56

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 private and national saving?

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

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Definitions:

Current Liabilities

Debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Noncurrent Assets

Assets intended for use over a long-term period, extending beyond one year, which include property, plant, and equipment, along with investments and patents.

Stockholders' Equity

The ownership interest of shareholders in a corporation, calculated by subtracting liabilities from the assets, representing the residual value.