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September 1, 2014

Homework Help: Macreconomics

Posted by Christo on Saturday, April 28, 2007 at 6:18am.

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?

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