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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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Chapter
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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

Does a higher rate of saving lead to higher growth temporarily or indefinitely?

To determine

Rate ofsaving and its effect on the standard of living.

Explanation

A higher rate of saving leads to a higher growth rate, temporarily. In the short run, increased saving leads to a larger accumulation capital stock and faster growth. But since, the accumulation of capital is subject...

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