Suppose that an economy is operating at equilibrium and for some reason households begin to save a smaller fraction of their income. How will this affect equilibrium output in the future when planned investment rises and falls?

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter23: The Aggregate Expenditure Model
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Suppose that an economy is operating at equilibrium and for some reason households begin to save a smaller fraction of their income. How will this affect equilibrium output in the future when planned investment rises and falls?

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