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Using Equations, Show That Saving Must Be Equal to Investment

Question 97

Essay
Using equations, show that saving must be equal to investment in the closed economy. Begin with the expression of total saving in the economy.
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Using equations, show that saving must be equal to investment in the closed economy. Begin with the expression of total saving in the economy.
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Correct Answer:

verifed

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S = Sprivate + Spublic. (1)
Private saving is:
Sprivate = Y ...

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