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What happens when the Investment is lesser than Savings? -

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प्रश्न

What happens when the Investment is lesser than Savings?

पर्याय

  • Aggregate Demand is more than Aggregate Supply.

  • Aggregate Demand is less than the Aggregate Supply.

  • Aggregate Demand is equal to the Aggregate Supply.

  • Aggregate Demand is independent of Aggregate Supply.

MCQ

उत्तर

Aggregate Demand is less than the Aggregate Supply.

Explanation:

When investment is less than savings, economic expenditure is less than what producers expected, resulting in an undesirable build-up of unsold stock. As a result, AD falls short of AS.

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Aggregate Demand and Its Components - Investment
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