Image there are two identical economies except they have different saving rates. What would be the consequences on living standards and growths?
Image there are two identical economies except they have different saving rates. What would be the consequences on living standards and growths?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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question 1: Image there are two identical economies except they have different saving rates. What would be the consequences on living standards and growths? You may formulate your answer based on the model of a close economy. Namely you may disregard the issue related to trade and international capital flows.
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