The rate at which a country saves its income has no effect on

Question

Quizplus · Accepted Answer

The rate at which a country saves its income primarily affects its investment behavior, interest rates, and potentially its short-run GDP and long-run standard of living. However, according to many economic growth models, such as the Solow growth model, the saving rate does not affect the long-run growth rate of an economy, which is determined by factors like technological progress and population growth.

The Rate at Which a Country Saves Its Income Has