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Q. |
An economy is in equilibrium when - |
A. | planned consumption exceeds planned saving |
B. | planned consumption exceeds planned investment |
C. | intended saving equals intended investment |
D. | intended investment exceeds intended savings |
Answer» C. intended saving equals intended investment | |
Explanation: In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. The condition of equilibrium of income is the equality of intended saving and intended investment. An economy is in equilibrium when total savings equal total investment. |
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