Consider the following statement: The Solow model shows that the saving rate does not affect the growth

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Consider the following statement: "The Solow 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?

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Macroeconomics

ISBN: 9780134897899

8th Edition

Authors: Olivier Jean Blanchard

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