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1) After learning Solow's growth model, a friend of yours says, There is a strange result that emerges from the Solow model: an increase in

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1) After learning Solow's growth model, a friend of yours says, "There is a strange result that emerges from the Solow model: an increase in the savings rate doesn't affect the rate of growth of output per worker in the very long run. So, there's really no good reason to adopt policies that aim at raising the savings rate." Based on your understanding of Solow's model, how would you respond to your friend? Write your answer in the space below -keep it brief! (2 POINTS)

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