Which of following best describes national savings in a closed economy?
Choose 1 answer:
(A) Private savings + net capital inflows
(B) Public savings only
(c) Private savings + public savings + net capital inflows
(D) Private savings + public savings
(E) Private savings only

Question

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of National Savings: National savings in a closed economy is the sum of private savings and public savings. ‖‖ b ⋮ Closed Economy: In a closed economy, there are no net capital inflows or outflows, meaning that the economy does not engage in international trade or financial transactions with other countries. ‖‖ c ⋮ Formula: The formula for national savings in a closed economy is $S = S_{private} + S_{public}$, where $S_{private}$ is private savings and $S_{public}$ is public savings. ‖ ∻Answer∻ ⚹ (D) Private savings + public savings ⚹ ∻Key Concept∻ ⚹ National savings in a closed economy ⚹ ∻Explanation∻ ⚹ In a closed economy, national savings is the sum of private savings and public savings, as there are no net capital inflows or outflows.◊What is the formula for calculating national savings in a closed economy according to the options provided?⍭ Generate me a similar question◊⚹

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