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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

According to classical economists, does an increase in saving shift the AD curve to the left? Explain your answer.

To determine

Explain classical economists’ view of increase in saving.

Explanation

According to classical economists, an increase in saving does not lead to shift the aggregate demand curve leftward. An increase in saving causes decrea...

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