The equilibrium condition of circular flow of income in a closed economy is ______.

Question

KollegeApply · Accepted Answer

The equilibrium condition of circular flow of income in a closed economy is S = I. Explanation: • This represents the equilibrium condition of the circular flow of income in a closed economy, where savings (S) are equal to investment (I). • This ensures that all income generated is either consumed or invested, maintaining equilibrium in the economy.

AChoose Your Answer