(Advanced analysis)Answer the question on the basis of the following information for a private closed economy,where I_g is gross investment,S is saving,and Y is gross domestic product (GDP). $\begin{array} { l } I _ { g } = \overline { I _ { g } } = 80 \ \mathrm {~S} = - 80 + 0.4 \mathrm { Y } \end{array}$ Refer to the information.In equilibrium saving will be: A) $40. B) $120. C) $60. D) $80.

Question

Quizplus · Accepted Answer

In equilibrium, saving (S) equals gross investment (I_g). Given I_g = 80, set S = 80 and solve for Y: -80 + 0.4Y = 80, which gives Y = 400. Substituting Y = 400 into the saving equation, S = -80 + 0.4(400) = 80.

(Advanced Analysis)Answer the Question on the Basis of the Following Ig=Ig‾=80 S=−80+0.4Y\begin{array} { l } I _ { g } = \overline { I _ { g } } = 80 \\\mathrm {~S} = - 80 + 0.4 \mathrm { Y }\end{array}Ig​=Ig​​=80 S=−80+0.4Y​

(Advanced Analysis)Answer the Question on the Basis of the Following $\begin{array} { l } I _ { g } = \overline { I _ { g } } = 80 \\\mathrm {~S} = - 80 + 0.4 \mathrm { Y }\end{array}$