If National Saving in a Closed Economy Is Greater Than

question 14

Multiple Choice

If national saving in a closed economy is greater than zero, which of the following must be true?

• A) Either public saving or private saving must be greater than zero.
• B) Investment is positive.
• C) Y - C - G > 0.
• D) All of the above are correct.

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Definitions:

Density Function

A mathematical function that specifies the probability of a random variable taking on certain values.

Parameter

A quantity that influences the output or behavior of a mathematical function or statistical model, often fixed during the analysis.

Exponential Random Variable

A type of continuous random variable that is used to model time until an event occurs, with a constant hazard rate.

Exponential Distribution

A continuous probability distribution that describes the times between events in a Poisson process, representing a constant hazard rate.