Question

how saving and investment can be equal?
​

Answer 1

Answer:

In equation (i) investment is that part of national income which is obtained from the production of goods other than those consumed and equation (ii) saving is that part of national income which is not spent on consumption. Hence the actual or ex-post sense, saving and investment by definition are equal.

Answer 2

Answer:

To be prove - S = I

We know that,

AY=AD , at equilibrium point

and , AY= C + S

AD=C + I

If AY = AD

Then, C + S= C + I

Therefore, S=I

Explanation:

HOPE IT HELPED YOU !!!