Assuming there is no foreign trade in the economy, the economy is in equilibrium when

Name: Assuming there is no foreign trade in the economy, the economy is in equilibrium when
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In a closed economy, saving (S) and taxes (T) are the key determinants of the supply of loanable funds while investment (I) and government spending (G) are the key determinants of the demand for loanable funds. Therefore, the equilibrium condition in a closed economy is I + G = S + T.

Assuming There Is No Foreign Trade in the Economy, the Economy