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Income Determination & the Multiplier · Question 16 of 58

Question 16

MediumOriginal question

Read the two statements and choose the correct option.

I. At equilibrium income, saving is zero.

II. At equilibrium income, planned saving equals planned investment.

Options for question 16

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Saving is zero at the break-even income, not at equilibrium. I is false.

  2. S = I is the equilibrium condition. II is true.

Concept
Saving at equilibrium
Typical time
70 s
Your time
—
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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