Grand Canyon ECN 360 Module 6 DQ - Fiscal Policy and Government
Question # 00049394
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Updated on: 02/18/2015 10:05 AM Due on: 02/18/2015
Module 6 DQ 1
Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)
If the federal government were required to balance the budget each year, would this have a positive or a negative impact on the economy? Why?
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Solution: Grand Canyon ECN 360 Module 6 DQ - Fiscal Policy and Government