Economics (MindTap Course List)
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Economics (MindTap Course List)
According to classical economists, if saving rises and consumption spending falls, will total spending in the economy decrease? Explain your answer.
Explain the relationship between saving, consumption and total spending.
In classical economy, if saving decreases and consumption increases, then the total spending will not decrease because an increase in saving will decrease the interest rate and stimulate the investment spending...
Chapter 9 Solutions
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