Which of the following is not always correct for a closed economy?
A)National saving equals private saving plus public saving.
B)Net exports equal zero.
C)Real GDP measures both income and expenditures.
D)Private saving equals investment.

Question

Quizplus · Accepted Answer

In a closed economy, private saving does not necessarily equal investment because private saving is the sum of household saving and business saving, while investment is determined by the level of capital expenditure. National saving, which includes both private and public saving, equals investment in a closed economy.

Which of the Following Is Not Always Correct for a Closed