Explain the relationship among output,saving,and investment.

Name: Explain the relationship among output,saving,and investment.
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The Answer is The level of output (per worker)will depend on the capital-labor ratio.The amount of capital will depend on investment (and depreciation).Investment will,in turn,depend on the amount of saving.Changes in saving will cause changes in investment,capital,and,therefore,output.

Explain the Relationship Among Output,saving,and Investment