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Question
Assertion (A): Ex-post Investments represent planned Investments; whereas ex-ante Investments represent actual level of investments.
Reason (R): At equilibrium level, Ex-ante Savings and Ex-ante Investments are always equal.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Solution
Assertion (A) is false but Reason (R) is true.
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RELATED QUESTIONS
Given the following data, find the missing values of 'Private Final Consumption Expenditure' and 'Operating Surplus'.
| S.No. | Particulars | Amount (In ₹ crores) |
| (i) | National Income | 50,000 |
| (ii) | Net Indirect Taxes | 1,000 |
| (iii) | Private Final Consumption Expenditure | ? |
| (iv) | Gross Domestic Capital Formation | 17,000 |
| (v) | Profits | 1,000 |
| (vi) | Government Final Consumption Expenditure | 12,500 |
| (vii) | Wages & Salaries | 20,000 |
| (viii) | Consumption of Fixed Capital | 700 |
| (ix) | Mixed Income of Self Employed | 13,000 |
| (x) | Operating Surplus | ? |
| (xi) | Net Factor Income from Abroad | 500 |
| (xii) | Net Exports | 2,000 |
State the meaning of the following:
Ex-Ante Savings
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