Question:

Urgent help - saving and investment? closed economy? HELP!!!!?

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Pls tell me if the statement below is true, false or ambiguous and reasons for your answers. the better the explaination the more points..thnx

In a closed economy, saving and investment are only equal when inflation is at the target rate of inflation.

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  1. FALSE.....Depends on what you're investing in....Look at historical stock prices for solid large companies over the past 20-30 years. It doesn't matter what the economy or inflation is at, their stock proces keep going up.

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