The budget

ECN 360 Week 6 Discussion 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.)

ECN 360 Week 6 Discussion 2

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?