1. If the people in a certain economy decide to stop saving and

instead use all their income for consumption. They do nothing to add to

their stock of human or physical capital. Discuss the prospects for

growth of such an economy.

2. Singapore has a saving rate that is roughly three times greater than that

of the United States. Its greater saving rate has been one reason why the

Singapore economy has grown faster than the U.S. economy.

if the United States increased its saving rate to, twice the

Singapore level, U.S. growth would surpass the Singapore rate. Would

that be a good idea?

An increase in air pollution causes capital to wear out more

rapidly, doubling the rate of depreciation. How would this affect

economic growth?