Which of the Following Restrictions Implies That Private Saving and Investment

question 90

Multiple Choice

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

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

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Definitions:

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any commitment or obligation.

Redistribution of Wealth

A process or policy aimed at adjusting the distribution of wealth within a society, usually by transferring wealth from the richer to the poorer segments.

Consideration

Something of value exchanged between parties as part of a contract.

Adequacy of Consideration

A legal concept referring to the fairness of the value exchanged in a contract, ensuring each party receives something of comparable worth.