For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as

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In a simple economy without government or foreign sector, there are only two components of spending: consumption and investment. Equilibrium occurs when total planned investment (which includes planned inventory accumulation) equals total saving. Therefore, the correct condition for equilibrium is that saving equals planned investment, which is reflected in choice C. Choices A and B are incorrect because actual investment and inventory accumulation may not necessarily equal planned investment, and choice D is incorrect because it ignores the role of saving in determining equilibrium.

For a Simple Economy (No Government, No Foreign Sector), the Condition