What’s the difference in the wealth effect and consumption spending & the real interest rate effect and changes in Ig
@kceey_dc2 жыл бұрын
This is extraordinary
@MissShaeshae123455 жыл бұрын
I am finally understanding this!
@tdv104 жыл бұрын
I am having a question on how an increase in savings would affect AD. I know that it would decrease consumption and increase investment, but what about the overall shift in AD? I have read somewhere that it would lead to an overall decrease in AD but no one mention why the effect on consumption outweighs that of investment.
@vaibhav38744 жыл бұрын
short run decrease in AD, long run increase in AD (I think).
@kajalsingh90903 жыл бұрын
Coz increase in savings decreases consumption expenditure as the income is limited in this way AD decreases may be.....