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alukav5142 [94]
3 years ago
7

Which of the following statements is correct?

Business
1 answer:
Gwar [14]3 years ago
8 0

Answer:

C) For a closed economy, the sum of private saving and public saving must equal investment.

Explanation:

In a closed economy, public savings (or budget surplus) = tax revenue - government spending

Private savings = aggregate spending - taxes + government transfers - private consumption

National savings = investment = public savings + public savings

For a closed economy, the savings-investment spending identity states that national savings and investment spending are always equal.

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