This shows an attempt that an attempt by the community to save more out of any given will lead to decrease in the amount it succeeds to save. With the original savings function, S, and investment, I, equilibrium income is Y1. An increase in the amount of savings causes the savings function to shift upwards. This leads to a new equilibrium income Y2. This leads to a decrease in the amount of savings
Dana05 answered the question on August 14, 2019 at 07:11
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