Question: 4. A DVCs population is growing 2 percent per year and output is growing 3 percent per year. If the government wants to improve living

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

LO22.2

a. 0 percent.

b. 2 percent.

c. 5 percent.

d. 10 percent.

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