Consider the market for loanable funds 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) trouble achieving potential real national income in the short run.
B) either a high or low growth rate depending on the investment demand schedule.
C) a high growth rate because aggregate expenditure will be high out of any given income.
D) an AS curve moving continually to the left.
E) a high growth rate because sustained high investment is possible with high saving.
Correct Answer:
Verified
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