1. Why is the effect of saving so controversial to economists? a. increased saving always has...

1. Why is the effect of saving so controversial to economists? a. increased saving always has an unambiguously positive effect on the economy. b. increased saving always has an unambiguously negative effect on the economy. c. increased saving may hurt the economy in the short run but help it in the long run. d. decreased saving my hurt the economy in the short run but help it in the long run. e. because different schools of economic thought use different definitions.

2. Many less developed countries have low rates of economic growth because a. high population growth rates reduce the growth of capital per labor. b. low population growth rates result in an inadequate labor supply. c. high current output per capita reduces incentives for growth d. interest rates are too high. e. they invest too much in infrastructure leaving little for private capital investment

Expert Solution

Rahul Sunny answered 8 months ago

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