Question

Why does savings = investment in equilibrium? Explain your answer. What if savings was greater than...

  1. Why does savings = investment in equilibrium? Explain your answer.
  2. What if savings was greater than investment? What would happen? What if savings was less than investment? What would happen? Explain your answers.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

We can write national income identiy as follows y C+ I + be Y - Income private Tax - consumption of all commers or consumptio33 3 3 3 when gaving is greater than investment supply of lonable funds is higher than demand s will fall to me the equilibri

Add a comment
Know the answer?
Add Answer to:
Why does savings = investment in equilibrium? Explain your answer. What if savings was greater than...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT