Asked by
Farah Izzati
on Dec 12, 2024Verified
Which of the following is true of saving and investment?
A) There is no relationship between saving and investment; people can invest without having to save.
B) Saving and investment can never be undertaken together by the same person.
C) Saving and investment must always be undertaken by the same person.
D) If investment is going to be undertaken, someone must save.
Saving
Current income that is not spent on consumption goods. Saving makes it possible for resources to be devoted to investments (like the making of tractors or other equipment used in production).
Investment
The purchase, construction, or development of resources, including physical assets, such as plants and machinery, and human assets, such as better education. Investment expands an economy’s resources. The process of investment is sometimes called capital formation.
- Grasp the relationship between saving and investment in an economy.
Verified Answer
FA
Learning Objectives
- Grasp the relationship between saving and investment in an economy.