Examveda
Examveda

If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be

A. zero

B. equal to government income

C. larger than government income

D. negative

Answer: Option B

Solution(By Examveda Team)

If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be equal to government income.

This Question Belongs to General Knowledge >> Indian Economy

Join The Discussion

Related Questions on Indian Economy