If saving exceeds investment, the national income will ____________.

In macroeconomics, according to the Keynesian circular flow of income, saving is treated as a leakage or withdrawal from the income stream, whereas investment is considered an injection into the income stream.When planned saving exceeds planned investment ($S>I$), it implies that aggregate demand falls short of aggregate supply because households are consuming less than what is required to purchase the total output produced. This leads to an unintended accumulation of inventories with producers. To clear the unsold stock, producers will cut down on production, reduce employment, and consequently, the national income will fall until a new equilibrium is established where saving equals investment ($S=I$).