At the $180 billion equilibrium level of income, saving is $38 billion in a private closed economy. Planned investment must be
A) $138 billion.
B) $126 billion.
C) $38 billion.
D) $180 billion.

Question

Quizplus · Accepted Answer

In a private closed economy, at equilibrium, saving equals planned investment. Therefore, if saving is $38 billion, planned investment must also be $38 billion.

At the $180 Billion Equilibrium Level of Income, Saving Is