Suppose Private Saving in a Closed Economy Is $12b and Investment

question 6

Multiple Choice

Suppose private saving in a closed economy is $12b and investment is $10b.

• A)National saving must equal $12b.
• B)Public saving must equal $2b.
• C)The government budget surplus must equal $2b.
• D)The government budget deficit must equal $2b.

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Definitions:

Personal Accountability

Personal accountability is the self-imposed responsibility of an individual to own their decisions, actions, and outcomes, and to openly acknowledge and learn from mistakes and successes.

Corporate Misdeeds

Wrongful or illegal actions committed by companies or their representatives.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Technology

The application of scientific knowledge for practical purposes, especially in industry.