00:01
Hello there.
00:03
My name is clearo and i'm going to answer the economics questions we state will a national savings increase if an autonomous investment is made in a closed economy.
00:16
Mind you, there's a condition to consider a recession.
00:21
And remember that in a recession, there is a negative growth in gdp.
00:28
There is an excessive increase in unemployment.
00:34
Autonomous investment remains constant regardless of the measure of income in the economy.
00:42
Therefore, it does not directly or indirectly depend on external factors such as profit or income or gdp.
00:54
Plus, autonomous investment's main purpose is stability and security or welfare of the public.
01:04
Therefore it's considered a need or a must now before i answer the question remember that in a closed economy gdp is consumption spending plus investment spending plus government spending so it is the sum of consumption spending investment spending and government spending and national savings in a close economy is the sum of private savings and government savings or earness equals gdp minus c minus g in a closed economy now to answer the question national savings is highly likely to increase this is because consumer cushions act as a mob to soak up excessive expenses which that consumption spending decreases.
02:19
Remember that during the recession, consumer wants to spend less and save more so that they can have a cushion in case of job losses...