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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

2 Answers

4 votes
The correct answer is false
User David Verhasselt
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4 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 Or Hor
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