Case Discuss how savings and investments fit into the circular flow model of EconIsle?Study: Consider the fictional economy of EconIsle, a small island nation with a population of 10,000 individuals, where economic activities are interdependent among various sectors: households, businesses, government, financial institutions, and the external sector. Household Sector: EconIsle is inhabited by 8,000 households, each earning income from diverse sources such as wages, salaries, rents, and profits. On average, households allocate R2,000 per month for consumption expenditure, encompassing necessities and discretionary spending. Additionally, households may choose to save a portion of their income at banks and other financial institutions. Business Sector: EconIsle hosts 500 businesses operating across industries like agriculture, manufacturing, services, and tourism. These businesses produce goods and services valued at R20 million monthly, catering to domestic demand and potentially engaging in exports. Expenditures incurred by businesses include wages, procurement of raw materials, rental payments, and taxes. Government Sector: The government of EconIsle levies taxes totalling R5 million monthly on households and businesses. Government spending amounts to R10 million per month, allocated towards public services, infrastructure development, education, healthcare, and social welfare programs. Financial Sector: EconIsle's financial sector comprises banks and other financial intermediaries. Financial institutions gather savings