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Vinayak Nandikal
DEPRE SSION
E2] LOW
E1] OVER
CONFIDENCE
PRODUCTION
LEVEL
E1] OVER
PRODUCTION
Meals supplying company Demand for other goods Started saving money
got the hit come down instead of spending
Producers; Consumers;
Can produce and Can decide to
sell at their prices buy or not;
th Producers
20 April 2009
and Consumers are free to act; Not a forced act
Vinayak Nandikal
G] How to come out of recession?
, Government does not have direct control on Producers
mers’ behavior; But, they can influence millions of Producer
mers with Government’s policies;
If we advise our people to save money, then, the multiplication effect is that
the demand will not pickup and recession will continue; Very peculiar!!!!! But,
am not misguiding you; Just think from a macro level, if everybody in the
country stops spending, what will happen?