Macreconomics

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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  1. the introduction of a tariff is expected to

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    posted by mike k

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