Say's Law can still apply to an equilibrium over time with increasing inputs, with the participation of
A) Revenue Canada.
B) R.O.W.
C) the Minister of Finance.
D) the banking system.
E) the Supreme Court of Canada.

Question

Quizplus · Accepted Answer

The banking system plays a crucial role in facilitating the exchange of goods and services in an economy, thus allowing for Say's Law to apply over time with increasing inputs. Through lending and the creation of credit, banks enable producers to invest in new equipment and technologies, which can increase productivity and output in the long run. This, in turn, generates more income and spending, leading to a new round of production and investment. Therefore, the banking system is integral to the functioning of a modern economy and the realization of Say's Law.

Say's Law Can Still Apply to an Equilibrium Over Time