what is the relationship between investment and saving in the cyclical flow of the economy

Q: Why is a slow growing economy a problem during a recession?

A: To find : Why is slow economy a problem during recession.

Q: Is it possible for total saving to fall when people become more thirfty?

A: Answer: The paradox of Thrift was introduced by J.M.Keynes, this theory explains when individuals…

Q: 6. The principle of transition dynamics can be summarized as: a. the further below its steady state…

A: 1) The transition dynamics idea is applied in the long-term Solow model. This theory states that any…

Q: A decline in the interest rate is unlikely to have no effect on GDP? Agree or disagree? Why?

A: Below is the component of GDP: *Consumption *Investment *Government Expenditure *Net-Export

Q: The table below is broken down by Month, Real Interest Rate (%), Loanable Funds (trillions of $),…

A: The economies have various entities, who work together in order to bring economic growth, and…

Q: How many recessions has France undergone over the years plotted in the chart? What are the two…

A: The first recession shown in the diagram was during the 1975 oil-crisis. This had an adverse and…

Q: What are some example possible reasons for a decline in the level of potential GDP?

A: Three reasons for a decline in the level of potential GDP is decrease in the population i.e. the…