Economics: Principles & Policy
Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Chapter 24, Problem 7DQ
To determine

The impact of saving incentives on consumption function.

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What does it mean by the logic:   When output is too low, what needed is an increase in demand for goods and services. Investment is one component of demand, and saving equals investment. Therefore, if the government could just convince households to attempt to save more, then investment and output would increase.

Chapter 24 Solutions

Economics: Principles & Policy

Ch. 24.A - Prob. 1DQCh. 24.A - Prob. 2DQCh. 24.A - Prob. 3DQCh. 24.A - Prob. 1TYCh. 24.A - Prob. 2TYCh. 24.A - Prob. 3TYCh. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQ
Ch. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 1TYCh. 24 - Prob. 2TYCh. 24 - Prob. 3TYCh. 24 - Prob. 4TY
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