📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which of the following situations will happen if savings

      exceed investment in any country at any time?
      A National income rises Correct Answer Incorrect Answer
      B National income falls Correct Answer Incorrect Answer
      C National income is not affected Correct Answer Incorrect Answer
      D National Income will be equal to GDP Correct Answer Incorrect Answer
      E None of the Above Correct Answer Incorrect Answer

      Solution

      When you increase your saving, the national income falls rather than rise. The demand deposits in banks will increase the national income because it is considered as investments. The deposits you keep in banks are actually used for investment by the banks.

      Practice Next
      More Research Questions
      ask-question