National saving and investment identity
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National saving and investment identity is when for any country, the quantity of financial capital supplied at any given time by savings must equal the quantity of financial capital demanded for purposes of making investments.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- National saving and investment identity. For any country, the quantity of financial capital supplied at any given time by savings must equal the quantity of financial capital demanded for purposes of making investments.
