In an Open Economy,an Increase in Saving Might Not Cause

question 45

Essay

In an open economy,an increase in saving might not cause an increase in domestic investment.Why not? Does that mean that an increase in saving is undesirable?

---

Definitions:

Blood Sugar

The concentration of glucose present in the blood, crucial for energy production in the body.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for diagnosis since it is related to the force and rate of the heartbeat and the diameter and elasticity of the arterial walls.

Hostile Attribution Bias

The propensity to interpret others' behaviors as having malicious intent, even when it's not justified.

Obstructionism

The deliberate delaying or prevention of the progress of initiatives, often through procedural means.