Figure 4.1
Determinants
of k/k
-In Figure 4.1 if the saving rate increases, then

Name: Figure 4.1 Determinants of k/k -In Figure 4.1 if the saving rate increases, then
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Question

Figure 4.1
Determinants
of  k/k 
-In Figure 4.1 if the saving rate increases, then

Quizplus · Accepted Answer

An increase in the saving rate means that households are saving more of their income and therefore consuming less, which results in an increase in national saving (S). This would shift the S + n curve upwards, as shown in Figure 4.1.