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Suppose That,at a Given Level of Disposable Income,consumers Decide to Save

Question 50

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Suppose that,at a given level of disposable income,consumers decide to save more.Explain what effect this decision will have on equilibrium income.Also,explain what effect this decision will have on the level of saving once the economy has reached the new equilibrium.

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This is the paradox of saving.Here,consu...

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