Economists should be concerned about the possibility that the world's developing countries will use the world's savings to finance investment and growth, leaving the industrial countries with insufficient funds for their own capital accumulation.

Question

Quizplus · Accepted Answer

Economists generally view the flow of savings from developed to developing countries as beneficial for global economic growth, as it allows for more efficient allocation of resources. Developed countries typically have more access to capital and can still finance their own investments.

Economists Should Be Concerned About the Possibility That the World's