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10 cards from this deck
Consumption (C), Investment (I), Gov spending (G), Net exports (X-M)
Nominal rate - inflation rate
Income = Consumption + Saving
Attempting to save more collectively reduces income and total savings
Rising asset prices make people feel wealthier, boosting spending
Severe shortage of funds; banks reluctant to lend
Saving = income not consumed; Investment = firms buy capital goods
Spending that adds to capital stock, increases productive potential
Change in income growth rate causes larger change in investment
Actual personal saving / Personal disposable income
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