Problem
Consider the effects of an increase in the saving rate on the United States capital-labor ratio, according to the Solow model.
a) What would be the immediate effect of a saving rate increase on the capital-labor ratio? What would be the long run effect?
b) Do you think it is worth it to increase the saving rate? If so, by how much? (Would you save 95% of your income?)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.