Identify the correct set of statements.
(A) Ex Ante Saving represents what is actually planned to save.
(B) Ex Post Saving represents what is actually planned to save.
(C) Ex Post Saving depicts what has actually happened.
(D) Ex Ante Post Saving represents what is actually saved.
Choose from the options given below:
Correct Answer :
(A) and (C) only
Solution :
The correct option is (A) and (C) only.
Step-by-step Explanation:
To identify the correct set of statements, let us understand the economic concepts of Ex Ante and Ex Post saving:
1. Ex Ante Saving: The term "ex ante" is a Latin phrase meaning "before the event". In macroeconomics, ex ante saving refers to the amount of saving that households and firms plan, intend, or desire to save at different levels of income in the economy during a specific period. Therefore, Statement (A) ("Ex Ante Saving represents what is actually planned to save") is correct.
2. Ex Post Saving: The term "ex post" is a Latin phrase meaning "after the event". In macroeconomics, ex post saving refers to the actual or realized saving in an economy during a given period. It depicts the actual outcome that has occurred. Therefore, Statement (C) ("Ex Post Saving depicts what has actually happened") is correct.
3. Let us evaluate the remaining statements:
• Statement (B) ("Ex Post Saving represents what is actually planned to save") is incorrect because ex post represents actual/realized savings, not planned savings.
• Statement (D) ("Ex Ante Post Saving represents what is actually saved") is incorrect as "Ex Ante Post" is not a standard economic concept, and what is actually saved is represented by ex post saving.
Since only statements (A) and (C) are correct, the correct choice is (A) and (C) only.
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