Assuming all other leakages and injections are equal, an economy will contract if total saving is greater than total investment.

Name: Assuming all other leakages and injections are equal, an economy will contract if total saving is greater than total investment.
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When total saving exceeds total investment, it implies that not all income is being cycled back into the economy through investment. This leads to a reduction in aggregate demand, which can cause the economy to contract.

Assuming All Other Leakages and Injections Are Equal, an Economy