Q. 17

Describe the adju

Answer :

● The economy is in equilibrium at the income level where the saving is equal to investment.


● If the planned savings are less than the planned investment it will lead to an increase in the production to meet the excess demand.


● The national income will increase which will increase the savings.


● This movement continues until saving is equal to investment.


● The equilibrium is established here because what the investors intended to invest will be equal to what the savers intended to save.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

GEconomics - Board Papers

IEconomics - Board Papers

If nominal incomeEconomics - Board Papers

An economy is in Economics - Board Papers

Sale of petEconomics - Board Papers

FEconomics - Board Papers

An economy Economics - Board Papers