Which one of the following expressions shows the investment-saving equality?

The total value of saving in the economy must equal the total value of investment. Assume a closed economy, where: 1 = Investment, S = Sprivate + Spublic Sprivate = Private Saving, Spublic = Public Saving, C = Consumption Expenditure, G = Government Expenditure, Y = GDP, TR = Government Tranfers. Which one of the following expressions shows the investment-saving equality? O A. S=Y-C-G Ô B. |=Y+ TR-C- O C. s=Y+T- TR-G OD. I=Y+TR-C-G Click to select your answer.

The total value of saving in the economy must equal the total value of investment. Assume a closed economy, where: 1 = Investment, S = Sprivate + Spublic Sprivate = Private Saving, Spublic = Public Saving, C = Consumption Expenditure, G = Government Expenditure, Y = GDP, TR = Government Tranfers. Which one of the following expressions shows the investment-saving equality? O A. S=Y-C-G Ô B. |=Y+ TR-C- O C. s=Y+T- TR-G OD. I=Y+TR-C-G Click to select your answer.

Answer

"A"

Investment = Total output - consumption - government expenditure.

Saving = Total output - consumpiton - government expenditure.

Equation A shows that the investment and savings in the market are equal .