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If there is an increase in savings in an economy and a decrease in national income, what is the reason? Explain by drawing a figure.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 1QR

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Question

2 / If there is an increase in savings in an economy and a decrease in national income, what is the reason? Explain by drawing a figure.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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