According to the saving investment viewpoint income employment equilibrium will be determined at a p...........

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According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:

S > I

I > S

S = I

None of these

Explanation:

- Option 1: S > I

When savings exceed investments, there is surplus savings. This can lead to reduced aggregate demand and lower income levels.

- Option 2: I > S

When investment exceeds savings, it results in increased demand and potential inflation. This imbalance can stimulate income but is not sustainable for equilibrium.

- Option 3: S = I

Income employment equilibrium is determined where savings equal investment. This balance ensures that all savings are used for investment, maintaining stable income and employment levels.

- Option 4: None of these

This option is irrelevant since the correct explanation exists within the given options.