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Ex Ante Consumption

Give the mean...

Question

Give the meaning of ex-ante saving.

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Solution

Ex-ante savings refers to the desired savings or planned savings during the period of one year. This is the savings which is intended to be made in the economy during the period of one year.

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Q. Explain, in brief, the concept of ex-ante and ex-post saving and investment. Why are ex-ante saving and ex-ante investment not always equal to each other?

Q. Will ex-ante saving always be equal to the ex-ante investment?

Q. Give the meaning of ex-ante investment.

Justify the statement:

(a) MPC and MPS are related to multiplier.

(b) Economy cannot be at equilibrium, when ex-ante savings greater than ex-ante investments.

(c) Investment increases with the increase in income.

Q. Distinguish between ex-ante and ex-post investment.

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