Which of the following restrictions implies that private saving and investment are equal for a closed economy?
A)Consumption and private saving are equal.
B)The economy's government is running neither a surplus nor a deficit.
C)Private saving and public saving are both zero.
D)No restriction is necessary;private saving and investment are equal for all closed economies.

Question

Quizplus · Accepted Answer

In a closed economy, the national saving is the sum of private and public saving. If the government is running neither a surplus nor a deficit, public saving is zero, making private saving equal to investment.

Which of the Following Restrictions Implies That Private Saving and Investment