Why does investment decline more with a higher saving rate

Reference no: EM131142109

Redo Question 1 but assume that households save 10 percent of their disposable income. What happens to consumption and investment? Why does investment decline more with a higher saving rate?

Reference no: EM131142109

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Why does investment decline more with a higher saving rate : Redo Question 1 but assume that households save 10 percent of their disposable income. What happens to consumption and investment? Why does investment decline more with a higher saving rate?

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