In a closed economy without a government, planned expenditures equal:

Name: In a closed economy without a government, planned expenditures equal:
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Question

Quizplus · Accepted Answer

In a closed economy without a government, there are no taxes or government spending, so planned expenditures only include the consumption (C) and investment (I) by households and businesses. Therefore, C+I is the correct answer. NX (net exports) is not included because there are no foreign transactions in a closed economy.

In a Closed Economy Without a Government, Planned Expenditures Equal