In order for Say's law to hold in a money economy,

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand. In a money economy, this means that the funds saved must be invested for production, and the resulting output must generate an income equal to the amount saved. Therefore, choice C is the best option as it states that funds saved give rise to an equal amount of funds invested, which is crucial in ensuring that production can create income and demand for goods and services. Choices A and B are incorrect as they do not address the importance of investment in the production process in creating demand.

In Order for Say's Law to Hold in a Money