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October 22, 2022

Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage.

Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)

DQ2 If the federal government were required to balance the budget each year, would this have a positive or a negative impact on the economy? Why?

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