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Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this

Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)


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Solution National Income is equal to Consumption plus savings or Y S It is clear that national incom... blur-text-image

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