When current savings of an economic unit exceed its direct investment in real assets, this is referred to as:
A) savings surplus
B) savings deficit
C) savings neutral
D) savings inflation

Question

Quizplus · Accepted Answer

A savings surplus occurs when an economic unit's savings exceed its direct investment in real assets. This means that the unit has more savings than it is currently investing in productive assets, which could potentially lead to slower economic growth or investment in other areas such as financial assets.

When Current Savings of an Economic Unit Exceed Its Direct