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The short-run effects of an increase in the saving rate include a higher level of productivity.

a. True
b. False

User Cocreature
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2 Answers

19 votes
19 votes
The correct answer is false
User Srinivas ML
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7 votes
7 votes

False

The short-run effects of an increase in the saving rate include a higher level of productivity, a higher growth rate of productivity, and a higher growth rate of income.

User Griotspeak
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