Consider the market for financial capital for a closed economy in the long run.Other things being equal,a country with a high national saving rate will tend to have
A) a high growth rate because aggregate expenditure will be high out of any given income.
B) a high growth rate because sustained high investment is possible with high saving.
C) an AS curve moving continually to the left.
D) trouble achieving potential real national income in the short run.
E) either a high or low growth rate depending on the investment demand schedule.
Correct Answer:
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