When Public Saving Falls by $2b and Private Saving Falls

question 98

Multiple Choice

When public saving falls by $2b and private saving falls by $1b in a closed economy,

• A)investment falls by $1b.
• B)investment falls by $3b.
• C)investment increases by $1b.
• D)investment falls by $2b.

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Definitions:

Marked Up

The process of increasing the price of a product or service from its original cost, often to ensure a profit margin.

Observation

Observation is the active process of carefully watching, noting, and analyzing phenomena or behavior in order to gain information or insights.

Interpret

To explain the meaning of information, words, or actions, often requiring context and understanding of the underlying concepts.

External Factors

Elements outside an organization or system that can affect its performance, including economic conditions, legislation, and social trends.