Because capital is subject to diminishing returns, higher saving and investment do not lead to higher a.
Question:
Because capital is subject to diminishing returns, higher saving and investment do not lead to higher
a. income in the long run.
b. income in the short run.
c. growth in the long run.
d. growth in the short run.
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The answer is c growth in the long run While diminishing returns apply to capital in the short run m...View the full answer
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