In the market clearing model, nominal saving is:

Question

Quizplus · Accepted Answer

Nominal saving is defined as the difference between nominal income and nominal consumption in the market clearing model. It does not take into account depreciation of capital, which is a separate concept. Option A is incorrect because nominal saving can be positive or negative, but it is not always zero. Option D is incorrect because depreciation of capital is not included in the definition of nominal saving.

In the Market Clearing Model, Nominal Saving Is