Multiple choice

Who among the following held the view that 'savings and investment are always equal but they are not always in equilibrium'?

  1. J. M. Keynes

  2. A. Marshall

  3. K. Wicksell

  4. D. Robertson

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Keynes argued that savings and investment are always equal in an accounting sense (ex-post), but they may not be in equilibrium (ex-ante) at the planned level. This distinction is crucial to his theory. Marshall focused on partial equilibrium, Wicksell on natural rates, and Robertson on forced saving.