What changes occur if planned savings are greater than planned investment?
Asked by Topperlearning User | 18th Apr, 2016, 02:19: PM
The following changes takes place in a situation when planned savings are greater than planned investment:
i. Stocks of the producers would be in excess of the desired limit
ii. Decrease in profit level
iii. Desired level of output will be less in the subsequent year
iv. Level of income and employment will tend to reduce until S = I
Answered by | 18th Apr, 2016, 04:19: PM
- What is meant by ex-ante saving?
- What is meant by autonomous consumption?
- What is marginal propensity to consume and marginal propensity to save?
- Value of marginal propensity to consume not greater than 1. Why?
- Give the meaning of ex-ante investment.
- What is meant by ex post measures?
- What is planned investment?
- What is ex post saving?
- What changes occur if planned savings are less than planned investment?
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