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Elvis Presley In The Memory Blue Black Crocs,
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βIn economics, income = consumption + savings. The income an indivual, or a country, produces is either consumed and/or saved. If you , or a Elvis Presley In The Memory Blue Black Crocs, overspends, you or the country dips into savings or creates debt.β I think this answer is true for the firm or the individual but in the whole economy it is no longer true. In the macroeconomy, everytime some person or entity doesnβt spend, some other person or entity has their income reduced by the same amount. And because that person wonβt get their hands on that money, they will not have it to spend further, so the next would-be recipient of that spending doesnβt get that income, which they in turn will not be able to spendβ¦.. and so on