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Economics miscellaneous

  1. An economy is in equili-brium when
    1. planned consumption exceeds planned saving
    2. planned consumption exceeds planned investment
    3. intended investment equals intended investment
    4. intended investment exceeds intended savings
Correct Option: C

In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. The condition of equilibrium of income is the equality of intended saving and intended investment. An economy is in equilibrium when total savings equal total investment.



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