What effect will greater savings have on real gdp


Although the U.S. is one of the richest nations in the world, it is also the world's largest debtor nation. We often hear that the problem is the nation's low savings rate. Suppose policy makers attempt to rectify this by encouraging greater savings in the economy. If their attempts are successful, what effect will this have on real GDP?

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Microeconomics: What effect will greater savings have on real gdp
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