“The Sollow model shows that the saving rate does not affect the growth rate in the long-run, so we should stop worrying about the low US saving rate. Increasing the saving rate wouldn’t have any important effects on the economy.” Explain why you agree or disagree with this statement. Structured response required.

“The Sollow model shows that the saving rate does not affect the growth rate in the long-run, so we should stop worrying about the low US saving rate. Increasing the saving rate wouldn’t have any important effects on the economy.” Explain why you agree or disagree with this statement. Structured response required.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Economic Growth: Resources, Technology, Ideas And Institutions

Section: Chapter Questions

Problem 3WNG

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