Which of the following equations represents investment spending in a closed economy?
a. I = Y + C – G
b. I = Y – C – G
c. I = Y – C + G
d. I = Y/ (C – G)
b. I = Y – C – G
Economics
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How would an increase in prices in retail stores change the real value of the money you earn as wages?
What will be an ideal response?
Economics
A temporary increase in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.
A. lower; increase B. lower; decrease C. raise; increase D. raise; decrease
Economics