ession and characterized by high unemployment. Hayek and Keynes who are notable in this field have different view on the role of savings specially public savings. The criticism of Keynes where he said the infamous line "in the long run we are
ession and characterized by high unemployment. Hayek and Keynes who are notable in this field have different view on the role of savings specially public savings. The criticism of Keynes where he said the infamous line "in the long run we are
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
This discussion is a continuation of the concept that in the goods market savings is equal to investment. This is known as the (IS) relation.The IS relation is true under a closed economy. However, the story is different under the circumstances where the economy is under recession and characterized by high
Discussion Questions:
When do savings become a positive virtue and when does it become bad for the economy?
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