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Why do they say that if everyone was to save a dollar than our income falls and savings does not rise.?

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Why do they say that if everyone was to save a dollar than our income falls and savings does not rise.?

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  1. Because it's related to real economy - if everyone saves dollar (under pillow) it will reduce money-supply increasing interest rate and reducing investments.

    Also you better give more details on question next time.


  2. because they don't know how to do math :(
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