Describe the adjustments that may take place in an economy when ex-ante savings are greater than ex-ante investments.
Answers
Answered by
3
Explanation:
Ex-Ante Investments are greater than Ex-Ante Savings:
Thus, there will be unplanned depletion of inventory (or unplanned dis-investment). In response to this, to increase the stock of output, the producers plan to expand production in the next period; thereby increase the employment of factors of production.
Similar questions