Multiple Choice
Where I is planned investment, S is saving, and Y is gross domestic product (GDP) .
I = I0 = 80 (6.3)
S = -80 + .4Y (6.4)
-Refer to equations (6.3) and (6.4) . The equilibrium saving in a private sector closed economy will be:
A) $40.
B) $120.
C) $60.
D) $80.
Correct Answer:
Verified
Correct Answer:
Verified
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