Which of the following statements about a closed economy is NOT correct?
A) Investment and consumption are to be satisfied with the same output.
B) Investment and consumption are at odds with each other.
C) A closed economy has to be self-sufficient.
D) Consumption smoothing and an increase in investment can be achieved simultaneously.

Question

Quizplus · Accepted Answer

In a closed economy, resources are limited, and increasing investment typically means diverting resources from consumption, making it challenging to achieve consumption smoothing and an increase in investment simultaneously.

Which of the Following Statements About a Closed Economy Is