Aggregate demand

Economics

In your classes said that AD=consumption +investment and Income =consumption+savings. My question - Is savings and Investment are same or not?

Hai Iam Anas

CA Inter

★ 8K+

27-Aug-21 11:06

611

Answers (1)

Saving involves income that is not consumed. Investment is defined as an addition to the capital stock. (Gross fixed capital formation) For example, investment can involve spending on factories or new capital.

Yoga Vishnu

CA Final

★ 11K+

27-Aug-21 11:42