How would the following events affect aggregate saving, Ask an Expert

Management Studies

How would the following events affect aggregate saving (private & public) in the United States? Hint: Distinguish between expectations and actual changes.

A) News of a discovery of oil reserves in Montana 10 times as large as those in the Middle East.

B) The economy grows twice as fast as expected, owing to higher productivity growth, so unemployment falls substantially.

C) Reconstruction projects in Eastern Europe require $1 trillion, causing an increase in the world real interest rate.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91703464

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