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Suppose the Economy Has More Savings Than Investment

question 80

Essay

Suppose the economy has more savings than investment. In the simple Keynesian model, how would the economy achieve equilibrium, assuming that desired investment is fixed?


Definitions:

Erection

A physiological response in which the penis or clitoris becomes engorged with blood and stiffens.

Paraphilia

Patterns of sexual interest that involve unusual objects, activities, or situations considered to be outside the norm of typical sexual behavior.

Premature Ejaculation

A sexual dysfunction characterized by ejaculation that occurs sooner than desired, either before or shortly after sexual penetration.

Exhibitionism

A psychiatric condition characterized by a compulsion to display one's genitals to an unsuspecting stranger for sexual pleasure.

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