Describe the adjustments that may take place in an economy when ex-ante savings are less than ex-anteinvestments.

Ex-ante saving is the amount of saving which the households plan to save at different levels of income in the economy.

Ex-ante investment is the amount of investment that the firms plan to invest at different levels of income in the economy.

When ex-ante saving is less than planned investment the Production will be increased so that excess demand could be met.

Hence , national income will increase leading to rise in saving till the saving becomes equal to investment.