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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the 'Savings Gap' and why is it Crucial for Investment? -What happens if Incomes are low?

Author: eric_galvao



Answer:

-This is the Gap between the Level of Domestic Saving and the Investment required for the Economy to Growth -If Incomes are Low, then Saving will also be Low as well, meaning quite Little Investment will be possible. Little Investments brings about Little Capital, which generates not a lot of Income. The cycle thus repeats...


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