In an economy without international trade,gross investment must equal ________ saving.

Question

Quizplus · Accepted Answer

In a closed economy without international trade, there are no foreign investments or savings, hence the sum of all investments in the economy must be equal to the sum of all savings. This includes national saving which is the sum of private and public savings. Therefore, in such an economy, gross investment must equal national saving.

In an Economy Without International Trade,gross Investment Must Equal ________