According to the savings-investment spending identity:

a) savings equals investment spending.

b) savings equals investment spending plus consumption spending.

c) government spending equals tax receipts.

d) total income equals consumption spending plus savings.

Question

Business

Courtney

3 April, 04:11

According to the savings-investment spending identity:

a) savings equals investment spending.

b) savings equals investment spending plus consumption spending.

c) government spending equals tax receipts.

d) total income equals consumption spending plus savings.

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Answers (1)

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Pranav Sutton · Answer 1

a) savings equals investment spending.

Explanation:

Savings is the part of the income that is not used and investment is money that is spent on capital. Savings-investment spending identity is a concept that says that the amount saved in an economy equals the amount invested. This because investments depend on the amount of savings available.

According to the savings-investment spending identity:a) savings equals investment spending.b) savings equals investment spending plus consumption spending.c) government spending equals tax receipts.d) total income equals consumption spending plus savings.

According to the savings-investment spending identity:

a) savings equals investment spending.

b) savings equals investment spending plus consumption spending.

c) government spending equals tax receipts.

d) total income equals consumption spending plus savings.