Cool The Fundamental Relationship Between Savings And Investment Spending Is That 2022. In keynes’ ‘general theory’, saving and investment equality is derived from the general equality of aggregate demand and aggregate supply (y = c + i) equilibrium in the economy is arrived at when total demand in the economy is equal to aggregate supply. Savings & investment spending • two instrumental sources of economic growth are:
Savings will increase as investment spendiong decreases The fundamental relationship between savings and investment spending is that. Incomes are generated by production and the economic system is said to be in equilibrium when all the incomes earned are returned to the income flow through spending.