If there is public dissaving,investment spending in the economy will decline,holding everything else constant.

Question

Quizplus · Accepted Answer

Public dissaving means that the government is spending more than it is collecting in revenue, leading to a budget deficit. This can result in a decrease in available funds for investment spending, which can cause a decline in overall investment in the economy. Therefore, if there is public dissaving, investment spending in the economy will likely decline.

If There Is Public Dissaving,investment Spending in the Economy Will