Saving represents
A) a source of funds for business investment.
B) a normal part of the circular flow of income and output.
C) an injection to the circular flow of income and output.
D) a counter-example to Say's Law that the classical economists never considered.

Question

Quizplus · Accepted Answer

Saving represents a source of funds for business investment. When individuals save, they deposit their money in financial institutions, which in turn provide funds for businesses to invest in capital goods and expand their operations. As such, saving is an important driver of economic growth and development.

Saving Represents