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For a Country in the Process of Development,a High Saving

Question 72

Multiple Choice

For a country in the process of development,a high saving rate is generally


A) helpful,because it makes resources available for investment.
B) helpful,because it causes a rapid growth of aggregate demand and thus makes it easier to capture economies of scale.
C) harmful,because it causes a stagnation of aggregate demand.
D) harmful,because it promotes imports of consumer goods.
E) unimportant;there is no observable relationship (either positive or negative) between saving and growth.

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