Which of the Following Restrictions Implies That Saving and Investment

question 24

Multiple Choice

Which of the following restrictions implies that saving and investment are equal for a closed economy?

• A)Private saving is equal to zero.
• B)Public saving is equal to zero.
• C)The economy's government is running neither a surplus nor a deficit.
• D)No restriction is necessary;saving and investment are equal for all closed economies.

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Definitions:

Work in Process

Inventory items that are partially completed in manufacturing or production but not yet ready for sale.

Units Transferred Out

The term used in cost accounting to refer to products or goods that have been completed and moved out of the work-in-process accounts into finished goods inventory.

Total Cost

The aggregate amount of expenses incurred by a company to produce goods or services, including fixed, variable, and semi-variable costs.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, incorporating all units available for sale.