“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 FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter20: Growth And Less Developed Countries

Section: Chapter Questions

Problem 6SQP

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