What is true when the credit market is in equilibrium?
A) Desired saving equals desired investment.
B) Desired employment equals the number of jobs available.
C) Desired consumption spending equals the total of saving plus investment.
D) The legal minimum wage equals the actual wage.

Question

Quizplus · Accepted Answer

When the credit market is in equilibrium, desired saving equals desired investment. This means that the amount of money people want to save is equal to the amount businesses want to invest, indicating a balance between the demand for and supply of credit.

What Is True When the Credit Market Is in Equilibrium