In A Circular Flow Diagram Of An Economy, How Does Savings Become Investment?

In the financial sector of a 5-sector circular flow diagram, how does savings become investment?

Related posts:

  1. Financial Planning : How to Increase Cash Flow
  2. Explain Why Savings Must Equal Investment Spending. What Government Policy Could Be Used To Increase The Natio
  3. When Expected Inflation Rises, How Is Savings And Investment Affected?
  4. Do Banks In Usa Or Canada Report Clients’ Investment Or Savings Income To The Government?
  5. 5k In Savings Bonds For Each Of Of My 2 Young Children (ages 5 And 6). What College Investment Is Best?
This entry was posted in Q&A's and tagged Become, Circular, Diagram, Does, Economy, flow, investment, Savings. Bookmark the permalink.

One Response to In A Circular Flow Diagram Of An Economy, How Does Savings Become Investment?

  1. Anonymous says:
    September 22, 2009 at 3:21 pm

    Savings whether they are in a bank or in the stock or bond market are by definition an investment. The bank loans out your savings to some business or individual while corporations use the sale of their stock or bonds as a means to raise capital to operate their business.