In macroeconomics, investment is the amount of goods(consumer goods or capital goods) produced or purchased per unit time which are not consumed at the present time. In other words, "investment" is the amount of goods saved for future use which is by definition "Savings". (Saving does not necessarily need to be in the form of cash. It can also be in the form of unused goods)

Therefore, economist has basically termed saving as "investment" and later found out that Saving = Investment. This may confuse people into thinking that savings and investments are separate concepts. However, both are same concept expressed in different vocabulary.

Now, if the word "Investment" means amount of capital goods produced or purchased per unit time which are not consumed at the present time and the word "Saving" means amount of consumer goods produced or purchased per unit time which are not consumed at the present time, "Saving" and "Investment" would not be same. Then, the Y = C + I should be converted to Y = C + S + I to depict more accurate definition and relation between Saving and Investment.

In the scenario 1, Amanda produced 500 dollar car (Y = 500 dollars). Joe buys the car. Depending on the use of the car, Joe may be either consuming or investing(which means consuming at a future date) the car. 500 dollars cash "saved" by Amanda is not a saving in an economical sense. 500 dollars cash is only a medium of exchange held by Amanda. It does not represent real consumer goods or capital goods saved for future use. Therefore in a bigger picture, Y = C + S + I where Y= 500 dollars, C + I = 500 dollars, S = 0 dollar.

In macroeconomics, investment is the amount of goods(consumer goods or capital goods) produced or purchased per unit time which are not consumed at the present time. In other words, "investment" is the amount of goods saved for future use which is by definition "Savings". (Saving does not necessarily need to be in the form of cash. It can also be in the form of unused goods)

Therefore, economist has basically termed saving as "investment" and later found out that Saving = Investment. This may confuse people into thinking that savings and investments are separate concepts. However, both are same concept expressed in different vocabulary.

Now, if the word "Investment" means amount of capital goods produced or purchased per unit time which are not consumed at the present time and the word "Saving" means amount of consumer goods produced or purchased per unit time which are not consumed at the present time, "Saving" is not necessarily equal to "Investment". Then, the Y = C + I should be converted to Y = C + S + I to depict more accurate definition and relation between Saving and Investment.

In the scenario 1, Amanda produced 500 dollar car (Y = 500 dollars). Joe buys the car. Depending on the use of the car, Joe may be either consuming or investing(which means consuming at a future date) the car. 500 dollars cash "saved" by Amanda is not a saving in an economical sense. 500 dollars cash is only a medium of exchange held by Amanda. It does not represent real consumer goods or capital goods saved for future use. Therefore in a bigger picture, Y = C + S + I where Y= 500 dollars, C + I = 500 dollars, S = 0 dollar.

In macroeconomics, investment is the amount of goods(consumer goods or capital goods) produced or purchased per unit time which are not consumed at the present time. In other words, "investment" is the amount of goods saved for future use which is by definition "Savings". (Saving does not necessarily need to be in the form of cash. It can also be in the form of unused goods)

Therefore, economist has basically termed saving as "investment" and later found out that Saving = Investment. This may confuse people into thinking that savings and investments are separate concepts. However, both are same concept expressed in different vocabulary.

In macroeconomics, investment is the amount of goods(consumer goods or capital goods) produced or purchased per unit time which are not consumed at the present time. In other words, "investment" is the amount of goods saved for future use which is by definition "Savings". (Saving does not necessarily need to be in the form of cash. It can also be in the form of unused goods)

Therefore, economist has basically termed saving as "investment" and later found out that Saving = Investment. This may confuse people into thinking that savings and investments are separate concepts. However, both are same concept expressed in different vocabulary.

Now, if the word "Investment" means amount of capital goods produced or purchased per unit time which are not consumed at the present time and the word "Saving" means amount of consumer goods produced or purchased per unit time which are not consumed at the present time, "Saving" and "Investment" would not be same. Then, the Y = C + I should be converted to Y = C + S + I to depict more accurate definition and relation between Saving and Investment.

In the scenario 1, Amanda produced 500 dollar car (Y = 500 dollars). Joe buys the car. Depending on the use of the car, Joe may be either consuming or investing(which means consuming at a future date) the car. 500 dollars cash "saved" by Amanda is not a saving in an economical sense. 500 dollars cash is only a medium of exchange held by Amanda. It does not represent real consumer goods or capital goods saved for future use. Therefore in a bigger picture, Y = C + S + I where Y= 500 dollars, C + I = 500 dollars, S = 0 dollar.