Assuming there is no foreign trade in the economy, equilibrium is achieved when ________ equal [saving + net taxes - investment].

Question

Quizplus · Accepted Answer

In an economy without foreign trade, equilibrium is achieved when government purchases equal saving plus net taxes minus investment. This is because government spending injects money into the economy, balancing out the savings, taxes, and investments to maintain equilibrium.

Assuming There Is No Foreign Trade in the Economy, Equilibrium