What will happen to total spending if.....?

Economics
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Total spending in the economy is equal to consumption plus investment plus government spending plus net exports. If households want to save and thus do not use all of their income for consumption, what will happen to total spending? Because total spending in the economy is equal to total income and output, what will happen to the output of goods and services if households want to save more? 

Aug 29th, 2015

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Total spending in the economy is equal to consumption plus investment plus government spending plus net exports. If households want to save and thus do not use all of their income for consumption, what will happen to total spending? 

THE TOTAL SPENDING WILL DECREASES

Because total spending in the economy is equal to total income and output, what will happen to the output of goods and services if households want to save more? 

If households save more then the total spending will decrease and the

OUTPUT WILL DECREASE

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Aug 29th, 2015

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Aug 29th, 2015
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