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Hey there, I wanna confirm that answer #3 Savings, is the answer? An increased savings is good for gdp because more savings means more spending
Hey there, I wanna confirm that answer #3 Savings, is the answer? An increased savings is good for gdp because more savings means more spending in the medium/longer run which stimulates the economy with more purchasing. And it's bad in a liquidity trap because more savings also means less spending during the build up of the saving process which is the short run of it.
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