Question 56
MediumOriginal questionRead the two statements and choose the correct option.
I. Ex ante saving and ex ante investment are always equal.
II. Ex ante saving equals ex ante investment only at equilibrium income.
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Savers and investors are different people with different plans, so I is false.
Income adjusts until the plans match; that is equilibrium. II is true.
- Concept
- Planned saving and investment
- Typical timeTypical
- 70 s
- Your timeYours
- —
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