Ex-ante Investment is more than Ex-ante savings: Suppose the industrialists wish to invest Rs 50,000 crores while the family units makes a saving of Rs 45,000 crores. In such a condition, the aggregate demand is more the aggregate supply. To supply this demand, the industrialists will use more raw material and more means of production to increase their production. This will lead to an increase in the national income, the saving and investment will become equal and a state of equilibrium will be achieved.
