Question

IN A SIMPLE CLOSED ECONOMY, ALL INVESTMENT SPENDING MUST COME FROM.
Select one:
A:MONEY CREATION
B:SAVING
C:FOREIGN BORROWING
D:DEBT ISSUANCE​

Answer 1

Answer:

the answer is d::::::::::

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Answer 2

In a closed economy, all investment spending must come from savings.

• In a closed economy, there is no involvement of foreign funds, all money used and borrowed must be from within the country.
• The savings done by the consumers and the government are lent out through banks as loans or invested.
• There are no exports, imports, foreign borrowing, in a closed economy.

The answer is (B) Savings.