Solve the question of and select the option from the choices A through D/E. Check your Answer and view the explanation.
Question: 10
Investment and savings are kept equal through a change in the level of
- Consumption
- Investment
- Government expenditure
- Income
Show/Hide Explanation
Correct Answer: A
None
Sol. Desired savings are kept equal to desired investment by responses to interest rate changes. Savings identity or the savings investment identity is a concept in National Income Accounting stating that the amount saved (S) in an economy will be amount invested (I).