Q118
If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
A.
zero
B.
equal to government income
AnswerC.
larger than government income
D.
negative
Answer: Option B
Solution
Answer: Option B
Solution:
If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be equal to government income.