Question
Savings and investment are always equal. Discuss.

Answer

Sand I can be realised (ex-post) or planned (ex-ante). Planned Sand planned I are equal only at equilibrium level. Realised S and realised I are always equal. The equality is derived as,
Y = C + S and Y = C + I
Hence, S = I
So, in ex-ante sense, saving and investment may or may not be equal, but in ex-post sense, saving and investment are always equal.

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