A DVCs population is growing 2 percent per year and its output is growing 3 percent per

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A DVC’s population is growing 2 percent per year and its output is growing 3 percent per year. If the government wants to improve living standards over the coming decades, which of the following would probably be the best savings rate for the economy?

a. 0 percent

b. 2 percent

c. 5 percent

d. 10 percent

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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