The possibility that there would be sufficient money for investment from savings and a very low rate of investment
A) is predicted by Say's Law.
B) will not occur according to Say's Law.
C) has never occurred.
D) will occur if profit rates are too high.

Question

Quizplus · Accepted Answer

Say's Law states that supply creates its own demand, meaning that if goods and services are produced, they will be consumed and therefore generate income for producers, which can then be used for investment. According to Say's Law, there can never be a situation where there is excess savings and insufficient investment, as saving will always lead to investment. Therefore, the possibility described in the question contradicts Say's Law and will not occur according to it.

The Possibility That There Would Be Sufficient Money for Investment