In a closed economy, national savings is:
A) the sum of the savings of individuals and corporations plus the savings of the government.
B) the sum of public savings plus private savings.
C) equal to national investment.
D) All of these are true.

Question

Quizplus · Accepted Answer

In a closed economy, national savings is indeed the sum of the savings of individuals and corporations (private savings) plus the savings of the government (public savings), and it is equal to national investment. This is because, in a closed economy, all savings must go into domestic investment, as there are no foreign investments.

In a Closed Economy, National Savings Is