Chicago economists think that leakage in the circular flow model does not exist. If this is the case, why does the government attempt to lower interest rates in order to encourage saving?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter15: Monetary Policy
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Chicago economists think that leakage in the circular flow model does not exist. If this is the case, why does the government attempt to lower interest rates in order to encourage saving?

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