When savings flows fall, living standards rise because people spend more.

Name: When savings flows fall, living standards rise because people spend more.
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Question

Quizplus · Accepted Answer

When savings flows fall, it typically means less investment in the economy, which can lead to lower productivity and potentially lower living standards over time. Spending more in the short term does not necessarily translate to higher living standards if it reduces investment in productive assets.

When Savings Flows Fall, Living Standards Rise Because People Spend