Discussion
If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
Answer: B
Government expenditure must be equal to government income.
In equilibrium, total injections equal total leakages. If planned saving alone equals planned investment, then the other pair - government spending and taxation - must balance too; otherwise a deficit or surplus would disturb the equality.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development