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Unformatted text preview: falls, the incentive for savings decreases, so households save less, and, necessarily, spend more, perfectly offsetting the decrease in investment spending. 3. According to Table 1, the recessions of 1974, 1980, the late 1980s, and 1990 were associated with increases in oil prices. But there were many other recessions for which changes in oil prices were unimportant....
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This homework help was uploaded on 04/22/2008 for the course ECON 203 taught by Professor Tang during the Spring '08 term at Ole Miss.
- Spring '08