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Consider the exogenous growth Solow-Swan mo del. An increase in the sav- ing rate increases the balanced growth path (or BGP) value of p er
Consider the exogenous growth Solow-Swan mo del. An increase in the sav- ing rate increases the "balanced growth path" (or BGP) value of p er eective worker capital, k, and p er eective worker output, y. That means that an increase in the saving rate increases p er capita consumption, ct, along the BGP in the long run. In three or four sentences, discuss the validity of this statemen
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