Problem
1. Explain in your own words why the equilibrium level of income will decline when planned leakages are in excess of planned injections.
2. Why do people save? How do they save? Which of the following adds to aggregate current saving?
a. Increasing deposits in a savings account
b. Purchasing a newly issued bond of the XYZ corporation
c. Paying off a past mortgage
d. Buying a new house
e. Purchasing a life insurance policy.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.