What Happens When Saving Is More Than Investment?

What Happens When Saving Is More Than Investment? When in a year planned investment is larger than planned saving, the level of income rises. At a higher level of income, more is saved and therefore intended saving becomes equal to intended investment. On the other hand, when planned saving is greater than planned investment in

How Does Not Spending Money Affect The Economy?

How Does Not Spending Money Affect The Economy? Even a small downturn in consumer spending damages the economy. As it drops off, economic growth slows. Prices drop, creating deflation. If slow consumer spending continues, the economy contracts. What would happen if no one spent money? Originally Answered: What would happen if no one in the