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Business, 15.04.2020 01:23 emblemhacks

Suppose that planned investment is fixed in an economy. Now if all individuals attempt to save more, A. the aggregate saving function shifts up, equilibrium income decreases, but aggregate saving remains the same. B. the aggregate saving function shifts up, aggregate saving increases, and equilibrium income decreases. C. the aggregate saving function shifts up, equilibrium income decreases, but the effect on aggregate saving depends on the value of MPS. D. the aggregate saving function does not change; the amount of aggregate saving remains unchanged, but only equilibrium income decreases.

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Suppose that planned investment is fixed in an economy. Now if all individuals attempt to save more,...

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