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What change take place in an …

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What change take place in an economy when planned saving is less than planned investment.

    • Posted by Navneet Kaur 6 years, 6 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Garima Goel 6 years, 6 months ago

    People save more than the firms expect them to consume. AD starts fallings means demand falls consumption falls. Since consumption of one is income of other. Income also starts fallings. Stock of firms rise because of less demand. They reduce production employment and output. As a result NI falls.

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