In the saving-investment approach, equilibrium income is where

saving is zeroCorrect answerYour answerplanned saving equals planned investmentCorrect answerYour answerinvestment is at its highestCorrect answerYour answerconsumption equals savingCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Y = C + S and AD = C + I, so AD = Y exactly when S = I.

Concept: S = I approach
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsEquilibrium: saving equals investment

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Ten questions from Income Determination & the Multiplier, at your own pace.

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Ten questions from Income Determination & the Multiplier, at your own pace.

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In the saving-investment approach, equilibrium income is where

Explanation