Let I = investment; Y = total income; C = consumption; G = government purchases.
In a closed economy:

Name: Let I = investment; Y = total income; C = consumption; G = government purchases. In a closed economy:
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Question

Quizplus · Accepted Answer

In a closed economy, the formula for national income (Y) is Y = C + I + G, where C is consumption, I is investment, and G is government purchases. Rearranging this formula, we get I = Y - C - G. Therefore, option A is the correct answer.

Let I = Investment; Y = Total Income; C =