Mentioned phenomenon on the economy and labor market

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During the crisis and ensuing recession, U.S. consumers increased their savings as they paid down debt ("deleveraged") but corporations simultaneously were reducing their investment.”

1. What are the consequential effects of the above mentioned phenomenon on the economy and labor market?

2. What was the reasoning justifying the government’s fund provision to the sinking financial institutions with the taxes levied from ordinary people?

Reference no: EM131127663

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