How will a high level of saving impact long-run economic growth?
A) Saving will drive interest rates higher,and thereby increase the returns to investment and stimulate growth.
B) Saving provides the source of investment capital that allows businesses to expand production and the economy to grow.
C) Saving will reduce consumption,and thereby retard economic growth.
D) Saving will reduce the funds available for investment and thereby retard entrepreneurship and economic growth.
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