The difference between savings and investment is that

Question

Quizplus · Accepted Answer

Savings involves setting aside a portion of income for future use, while investment involves purchasing assets that have the potential to generate income or increase in value over time. Therefore, savings is more focused on postponing consumption, while investment is more focused on purchasing capital assets. Option A is incorrect as savings can include putting money in a bank, but it is not the only form of savings. Option C is partly correct, but consumption refers to the use of goods and services, not the purchase of goods. Option D is incorrect as savings can actually increase output when used for investment purposes.

The Difference Between Savings and Investment Is That