How does this affect economic activity

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Reference no: EM13838207

Let's say our government runs an advertising campaign, encouraging its citizens to reduce spending money on consumer items, and instead save more money.

Let's say the campaign is successful, and that happens.

How does this affect economic activity?

On one hand the factory and shop owners appear to produce less, and thus hire less people, but on the other hand, there is more money available to build new factories etc.

Reference no: EM13838207

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