Posted by Christo on .
How does an increase in savings affect the individual components of a leakages-injections model (savings, taxes, imports, investment, government expenditure and exports)?
Assume investment, government expenditure and exports are exogenous.
do some research, then take a shot. Note that only planned investment can be exogenous; hint: if savings rises, what must happen to unplanned investment levels?
the introduction of a tariff is expected to