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:

Insolvent

The condition of being unable to pay debts as they fall due, or having liabilities that exceed assets.

Preferential Payment

A payment made to a creditor before bankruptcy that unfairly prioritizes that creditor over others, which can be reclaimed by the bankruptcy trustee.

Jewelry Store

A retail business establishment specializing in the sale of jewelry, including necklaces, rings, earrings, and bracelets, often offering repair services as well.

Bankruptcy Petition

A formal request filed in court by a debtor seeking relief from unmanageable debts, initiating bankruptcy proceedings.