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Savings Exceed Investment?
If Savings > Investments and the government is running a balanced budget , what would happen to the Aggregate Income . What would happen if Savings = Investment and the government is running a fiscal deficit ?
3 Answers
- 1 decade agoFavorite Answer
If Savings > Investments and the government is running a balanced budget, aggregate income would decrease.
If Savings = Investment and the government is running a fiscal deficit, aggregate income will increase.
- ?Lv 45 years ago
the main appropriate answer is $2 hundred billion surplus. through fact c+s+t+im=c+i+g+x or g-t= (s-i)-(x-m), or g-t= 2 hundred-4 hundred= -2 hundred To interpret the effect, it might desire to understand that if tax is better than spending (surplus), it is going to likely be -2 hundred in this equation. yet tax better than spending is obviously a surplus. The Indian guy is sturdy mathematically, yet provides a incorrect economic interpretation. I do wish I won't confuse you much greater.
- Anonymous1 decade ago
i agree with above respondent
