When desired national saving equals desired national investment,what market is in equilibrium?
A)the goods market
B)the money market
C)the foreign exchange market
D)the stock market

Question

Quizplus · Accepted Answer

When desired national saving equals desired national investment, the goods market is in equilibrium. This is because the desired amount of goods and services produced (which is determined by investment) matches the desired amount of goods and services consumed (which is determined by saving). In other words, the quantity of goods and services produced and sold in the economy is in balance, and there is no pressure for prices to rise or fall.

When Desired National Saving Equals Desired National Investment,what Market Is