CBSE Class 12-commerce Answered
What
changes occur if planned savings are less than planned investment?
Asked by Topperlearning User | 18 Apr, 2016, 02:19: PM
Expert Answer
The following changes takes place in a situation when planned savings are less than planned investment:
i. Current stock of the producers will be sufficient to cope with the level of aggregate demand
ii. As the desired level of stock is not available, the profit will not be maximum
iii. Producers may plan for higher level of output for the subsequent years
iv. Level of output and employment will rise to the equilibrium point
Answered by | 18 Apr, 2016, 04:19: PM
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Asked by Topperlearning User | 18 Apr, 2016, 02:19: PM
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