savings and investment are always equal
Answers
Answered by
6
Answer:
Saving Always Equal Investment (Accounting Equality): Keynes defined saving and investment in such a way that in his theory, saving always equals investment......
Explanation:
In the same way, national income is divided between consumption expenditure and saving (y=c+s).
Answered by
0
Answer:
saving and investment are ex ante and ex post.ex ante saving and ex ante investment are equal only at equilibrium level.ex post saving and ex post investment are always equal.now equality derived as Y=C+S and Y=C+I hence S=I.
so,ex ante sense, saving and investment may or may not be equal but ex post sense,saving and investment are always equal.
Similar questions