Which one the following four basic economic units consistently represents a savings surplus unit?
A)individuals
B)business firms
C)financial intermediaries
D)governments
E)none of the above

Question

Quizplus · Accepted Answer

Individuals are typically the ones who save their income and invest it for future use, making them a savings surplus unit. Business firms may have periods of surplus savings, but they also have periods of investment and borrowing. Financial intermediaries, such as banks, do not necessarily represent a savings surplus unit as they borrow from surplus units to lend to deficit units. Governments can either be a savings surplus unit or a deficit unit depending on their budget and spending decisions.

Which One the Following Four Basic Economic Units Consistently Represents