Suppose Americans decide to save more of theirincomes. If banks lend this extra saving to businessesthat use the funds to build new factories, how mightthis lead to faster growth in productivity? Who doyou suppose benefits from the higher productivity? Issociety getting a free lunch?
Suppose Americans decide to save more of theirincomes. If banks lend this extra saving to businessesthat use the funds to build new factories, how mightthis lead to faster growth in productivity? Who doyou suppose benefits from the higher productivity? Issociety getting a free lunch?
Chapter20: Economic Growth In The Global Economy
Section: Chapter Questions
Problem 10P
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Suppose Americans decide to save more of their
incomes. If banks lend this extra saving to businesses
that use the funds to build new factories, how might
this lead to faster growth in productivity? Who do
you suppose benefits from the higher productivity? Is
society getting a free lunch?
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