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Its the gap between the actual and potential GNP

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12y ago

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Are mutual funds an investment or saving?

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What is the relationship between saving and investment in an open economy?

In an open economy, saving and investment are closely linked. When individuals and businesses save money, it can be used for investment in the economy. This investment can lead to economic growth and increased productivity. Conversely, if there is a lack of saving, it can limit the amount of funds available for investment, potentially slowing down economic growth.


What is the relationship between actual investment and saving in the context of financial planning?

In financial planning, the relationship between actual investment and saving is that saving is the money set aside from income, while investment is using that saved money to generate potential returns. By balancing saving and investment, individuals can work towards achieving their financial goals and building wealth over time.


How do you define is investment an asset or not?

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What has the author Mathew Hauck written?

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Why must saving equal planned investment at equilibrium GDP in the private closed economy?

Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.


Which is one of the most stable investment?

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Who should one talk to for help in making an investment plan?

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Why is it that saving is equal to investment?

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What is the resource gap?

In economics, resource gap refers to the amount of foreign savings. It is also defined as investment minus domestic savings.