Which of the Following Restrictions Implies That Saving and Investment

question 24

Multiple Choice

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

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

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Definitions:

Usefulness

The quality of being practical and beneficial, especially in decision-making or assessing value.

Prepaid Expense

Expenses paid in advance for goods or services, which are recorded as an asset until the service is consumed or the good is used.

Insurance Policy

A contract between the insurer and the policyholder specifying the terms under which the insurer agrees to compensate the policyholder for loss.

One Year

A period of time consisting of 12 months or 365 days, used as a standard measurement of time for financial, contractual, and planning purposes.