To avoid a coordination failure, the intentions of savers and investors must be both

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Coordination failure occurs when savers and investors have different intentions or plans. In order to avoid this, the intentions of savers and investors must be at their planned levels. This means that savers are saving at the rate they intended, and investors are investing at the rate they intended. If either group deviates from their planned levels, it can lead to a coordination failure. Option A is incorrect because increasing intentions might cause a coordination failure if it is not in line with planned levels. Option C (more than full employment GDP) and option D (at levels set by the government) are irrelevant to the concept of coordination failure.

To Avoid a Coordination Failure, the Intentions of Savers and Investors