If national saving in a closed economy is greater than zero,which of the following must be true?
A)Either public saving or private saving must be greater than zero.
B)Investment is positive.
D)All of the above are correct.

Question

If national saving in a closed economy is greater than zero,which of the following must be true?
A)Either public saving or private saving must be greater than zero. 
B)Investment is positive. 
D)All of the above are correct.

Quizplus · Accepted Answer

If national saving in a closed economy is greater than zero, it means that the total amount saved by households, businesses, and the government (public saving) is greater than the amount spent on consumption. As a result, investment in the economy must be positive, as national saving is equal to investment in a closed economy. Therefore, both options A and B are correct, making option D the best choice.

If National Saving in a Closed Economy Is Greater Than