Is savings the same with investment?

Answer 1

In economics, Savings=Investment.

Answer 2

Absolutely no Saving actually finances Investment in other words it makes the money for investment available. In any economy saving is the amount of money which is not spend therefore put into the financial system to finance Investment via borrowing. In a closed economy remember equilibrium is when the savings are identical to investment so i can say saving is a leakage and investment an injection.

Answer 3

Many models in economics are based on the suppose that saving is equal to investment; this is for eliminate the impact of that difference on the economy. If we don not use this suppose then the theoric model that we are working on will be bad formulated.
Of course in the real world saving all the time are different to investment because all the investment does not have the same return rate.
Suppose an economy that have a saving of USD MM 1.000 and there is in all the economy 1 project that can need this money (by lends of a banks, maybe) by the following conditions:
Return Rate: 56%
Ammount required: USD MM 2.000
Risk: High
If we are society which likes risk then the investment will be financed by the savings and external resources, in this case I>S
If we are a society does not like the risk the this savings will not be used to finance the project, if they does not find external resources and the project is not made then I

Answer 4

Savings is to refrain from consuming your entire income. Investment is spending on capital goods that will generate future income.
Banks and financial institutions act as intermediaries between savers (households) and businesses (investors)
In equilibrium a closed economy, saving=investment
In the US net savings is zero but investment is not because we get investment from foreign savers.

Answer 5

Yes. But savings usually refers to putting money in to a bank or building society and getting interest. The Interest rates in Iceland have just gone up to around 13% - so expect better interest rates from Icesave in the UK! But investing is usually regarded as buying shares in companies or unit trusts or even bonds. Shares can go up or down in value and pay a dividend. Government bonds when issued cost £100. The interest rate is fixed on them and so if interest rates go up the price bonds trade at goes down. If interest rates go down the price the bonds trade at goes up. You get your £100 back when they mature.

Answer 6

yes and no. savings is just sitting there earning interst and having no chance of depleting. on the other hand investment uis an opportunity where you can earn alot or actually lose in some cases

Answer 7

When an economy is in equilibrium then yes. (In equilibrium in a two sector model economy that is having only households and firms)