Explain what aspects of the economy would be affected

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The AS curve does not describe the same kind of relationship between price and quantity as a microeconomic supply curve. Why?

It has been said that U.S. citizens do not have much propensity to save, and the low interest on savings accounts may be a reason. What would happen to the economy if, all else remaining the same, savings interest increased enough that we would have greater propensity to save? What aspects of the economy would be affected?

Reference no: EM1360276

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