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

Maeve Nixon

17 June, 17:14

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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Elisa · 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.