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

Economics
Tutor: None Selected Time limit: 1 Day

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

Thank you for the opportunity to help you with your question!

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

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 29th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Aug 29th, 2015
...
Aug 29th, 2015
Dec 11th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer