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    Exam 11: Classical and Keynesian Macro Analyses
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    Saving Is a Leakage from the Circular Flow
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Saving Is a Leakage from the Circular Flow

Question 285

Question 285

Essay

Saving is a leakage from the circular flow. Why didn't the classical economists think saving might cause consumption expenditures to fall short of total output?

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The classical economists believed that e...

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