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Discussion :: Indian Economy

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

    2. A.

     zero
    B.

     equal to government income
    C.

     larger than government income
    D.

     negative

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    Answer : Option B

    Explanation :

    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.

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