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a)How does the loss of consumer confidence affect production, investment and private savings? Does the attempt to save more necessarily lead to increased savings? Or
a)How does the loss of consumer confidence affect production, investment and private savings? Does the attempt to save more necessarily lead to increased savings? Or will it lead to a decrease in savings?
b)In terms of total savings and, therefore, of potential long-term growth, is a flat LM curve or a positive sloping LM curve better?
Carefully explain and if you could give me visual examples will be amazing.
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