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What is the effects of savings and investment in circular flow of the economic activity?
Wiki User
∙ 10y ago
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
Wiki User
∙ 10y ago
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Which economic trend might happen as a result of abnormal weather such as drought or flooding?
It can lead to negative effects on the economic activity and can even cause a recession.
Which description most accurately describes the input output model?
This model is used to estimate economic effects that an initial change in economic activity has on a regional economy.
What are the effects of savings and investments?
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