Saving is $15 billion at the $125 billion equilibrium level of output in a closed, private economy. Actual investment must be:
A) Less than saving
B) Greater than saving
C) Equal to $15 billion
D) Equal to $125 billion

Question

Quizplus · Accepted Answer

In a closed, private economy at equilibrium, saving equals investment. Therefore, actual investment must be equal to $15 billion.

Saving Is $15 Billion at the $125 Billion Equilibrium Level