Question

Explain what is meant by “warranted growth”. Will planned investment always equal planned savings?

Explain what is meant by “warranted growth”. Will planned investment always equal planned savings?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Warranted growth rate is the rate of growth at which the Economy does not expand indefinitely or go in to Recession.

Actual growth is the real rate increase in a country's GDP per year.

Actual savings and actual investments are always equal.

No it is not always equal.

It may or may not be equal.

For Example it is only when exante savings is equal to exante Investment takes place.such Equilibrium is rare because savers and Investors are different people who save and invest with different motives.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
"It doesn't matter if savings exceeds planned investment because over time savings and planned investment will...
"It doesn't matter if savings exceeds planned investment because over time savings and planned investment will become equal." Do you agree? Explain.
We said in the national income accounts, S = I, savings must equal investment; it is...
We said in the national income accounts, S = I, savings must equal investment; it is an identity. Does this mean that actual investment is the same thing as planned investment? Briefly explain why or why not
Using the national savings and investment indent, explain what crowding out is?  
Using the national savings and investment indent, explain what crowding out is?  
Explain how the following action will affect the level of planned investment spending and unplanned inventory...
Explain how the following action will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in income equilibrium. A sizable inflow of foreign funds into the country lowers the interest rate A.)Planned investment spending will increase and unplanned inventory investment will decrease. b/)Both planned investment spending and unplanned inventory investment will decrease. c.)Planned investment spending will decrease and unplanned inventory investment will increase. D.)Both planned investment spending and unplanned inventory investment will increase.
Higher levels of savings and investment lead to greater rates of economic growth. All of these...
Higher levels of savings and investment lead to greater rates of economic growth. All of these government measures result in higher savings and investment EXCEPT: subsidizing contributions made to pension funds. focusing taxation more on consumption. placing high regulations on business activities. using tax credits to offset tax liabilities. Type or paste question here
What is meant by investment activities. Discuss different categories of investment.
What is meant by investment activities. Discuss different categories of investment.
What is meant by the term “Return on Investment (ROI)?
What is meant by the term “Return on Investment (ROI)?
What is the balanced-budget multiplier? Explain why the balanced-budget multiplier is always equal to 1?
What is the balanced-budget multiplier? Explain why the balanced-budget multiplier is always equal to 1?
a) Explain how and why an increase in the level of savings affects the long-run growth...
a) Explain how and why an increase in the level of savings affects the long-run growth of real income. b) Explain the role of diminishing returns, and what this implies for relative growth rates across countries. c) Carefully describe and explain one government policy that could increase the long-run growth of real income. NOTE: (Please answer all parts, it's the same question. NO Handwriting please, I have difficulty understanding the handwritings, unfortunately.)
Explain what is meant by biofortification?
Explain what is meant by biofortification?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT