English

If S > I, it will lead to ______.

Advertisements
Advertisements

Question

If S > I, it will lead to ______.

Options

  • Excess demand

  • Deficient demand

  • Notional demand

  • Actual demand

MCQ
Fill in the Blanks
Advertisements

Solution

If S > I, it will lead to deficient demand.

Explanation:

In economic terms, "S" often represents savings, while "I" represents investment. If savings exceed investment (S > I), it often suggests that not all savings are being used for investment, which may result in a buildup of unsold products and services, implying a lack of aggregate demand. This circumstance is generally connected with AS, which means that Aggregate Supply is greater than aggregate Demand.

shaalaa.com
  Is there an error in this question or solution?
Chapter 12: Theory of Income and Employment - TEST YOURSELF QUESTIONS [Page 244]

APPEARS IN

Frank Economics [English] Class 12 ISC
Chapter 12 Theory of Income and Employment
TEST YOURSELF QUESTIONS | Q 29. | Page 244
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×