Question

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 the correct answer from the options given below :

• (A) and (D) only
• (A) and (C) only
• (B) and (D) only
• (C) and (D) only

Answer 1

The Correct Option is B

To determine the correct set of statements related to Ex Ante and Ex Post Savings, let's understand the definitions of these terms: 

• Ex Ante Saving: This term refers to the saving levels that economic agents plan or intend to achieve. It represents the amount that is planned to be saved before the actual transactions in the economy take place.
• Ex Post Saving: This refers to the amount of saving that actually occurs in the economy after all economic activities are completed. It shows what has actually been saved as opposed to what was planned.

Using these definitions, let's analyze the statements:

1. Statement (A): Ex Ante Saving represents what is actually planned to save.
   This is correct because Ex Ante Saving signifies planned savings.
2. Statement (B): Ex Post Saving represents what is actually planned to save.
   This is incorrect, as Ex Post Saving refers to actual savings, not planned.
3. Statement (C): Ex Post Saving depicts what has actually happened.
   This is correct. Ex Post Saving is concerned with actual outcomes.
4. Statement (D): Ex Ante Post Saving represents what is actually saved.
   This is incorrect; the term "Ex Ante Post Saving" is not standard, and Ex Ante itself refers to planned, not actual, savings.

Based on the analysis, the correct set of statements is (A) and (C) only.

Answer 2

Ex Ante Saving refers to the amount of savings that individuals or households plan to set aside during a specific period, based on their income and expenditure expectations. It represents the intended or forecasted savings before actual income and spending occur. This type of saving is often influenced by factors such as personal financial goals, anticipated income, and expected expenses.

On the other hand, Ex Post Saving refers to the actual amount of savings that has been accumulated after the period has ended. It represents the difference between actual income and actual expenditure, providing a real measure of how much was saved, rather than what was planned. Ex Post Saving may differ from Ex Ante Saving due to changes in income, unexpected expenses, or changes in personal financial behavior during the period.

The comparison between Ex Ante and Ex Post Saving helps economists understand the accuracy of saving predictions and the factors that lead to differences between planned and actual savings. It also provides insight into the economic behavior of individuals and households in terms of financial planning and adjustments.