Other things constant,a higher savings rate

Name: Other things constant,a higher savings rate
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A higher savings rate means more investment in capital, which leads to higher productivity and economic growth, which in turn leads to higher standards of living in the future. However, it does not necessarily mean higher standards of living today or a decline in the rate of growth of the population. In fact, in the short run, a higher savings rate may lead to lower consumption and slower economic growth.

Other Things Constant,a Higher Savings Rate