In Which of the Following Cases Would It Necessarily Be

question 89

Multiple Choice

In which of the following cases would it necessarily be true that national saving and private saving are equal for a closed economy?

• A)Private saving is equal to government expenditures.
• B)Public saving is equal to investment.
• C)After paying their taxes and paying for their consumption,households have nothing left.
• D)The government's tax revenue is equal to its expenditures.

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Definitions:

Perpetual Inventory System

A continuous tracking method for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

LIFO

Last In, First Out, an inventory accounting method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

Products' value that is available for transaction at the culmination of an economic period.

Merchandise Inventory

Goods held by a business for the purpose of resale to customers in the ordinary course of business.