In a Closed Economy,which of the Following Equations Reflects Investment

question 193

Multiple Choice

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

• A)Y - C - G
• B)Y - C - T
• C)Y - T + TR
• D)C + G -T

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Definitions:

Expected Value

A calculated average of all possible values for a random variable, taking into account their probabilities of occurrence.

Lottery

A form of gambling involving the drawing of numbers at random for a prize, often regulated by governments.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to a negative outcome for the less-informed party.

Insurance

A financial product that provides protection against losses or damages to a person or property in exchange for premium payments.