Economy, asked by vaishnav0904, 3 months ago

type of economy is in equilibrium when investment is equal to saving

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Answered by mmuhammadfaiq2007

Answer:

We have seen that the economy is in equilibrium only when saving (in exposit or realised sense) is equal to investment (in the ex-post or realised sense), i.e. S = I. This is what we may call real Keynes. But Keynes also defined saving and investment in such a way that they are always equal S = I.

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