Nick Rowe — “Profits = Investment – Saving”

Summary:
"Profits = Investment - Saving"Or, "Profits = Expenditure - Income". Those are just alternative ways of saying the same thing, for a closed economy, if investment and saving include government investment and saving. Most economists will say that's wrong. And it is wrong by standard definitions, where aggregate expenditure and income are the same thing, and investment and saving are also the same thing (for a closed economy, including government investment and saving). But let me tell you a story: Worthwhile Canadian Initiative"Profits = Investment - Saving"Nick Rowe | Associate Professor of Economics at Carleton University, Ottawa, Canada

Topics:
Mike Norman considers the following as important: investment, profit, saving

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