The supply of saving equals desired _____ and the demand for saving equals desired _____.
A)national saving; investment
B)investment; public saving
C)private saving; investment
D)national saving; capital

Question

Quizplus · Accepted Answer

The supply of saving comes from national saving, which is the total saving of households, firms, and the government. The demand for saving comes from investment, which is the amount of funds that firms seek to borrow to invest in new capital projects. Therefore, the correct choice is A, where the supply of saving equals national saving and the demand for saving equals investment.

The Supply of Saving Equals Desired _____ and the Demand