2. A prolonged high national savings rate can cause a problem in the domestic economy because.. it causes low spending on infrastructure and export-capacity, even when many opportunities for productive investment exist. B) A) it is primarily the result of households choosing to save their income rather than spend it, which lowers revenue for domestic firms. C) it causes high spending on infrastructure, manufacturing-capacity, and real estate to continue long after this spending has ceased to be productive.

2. A prolonged high national savings rate can cause a problem in the domestic economy because.. it causes low spending on infrastructure and export-capacity, even when many opportunities for productive investment exist. B) A) it is primarily the result of households choosing to save their income rather than spend it, which lowers revenue for domestic firms. C) it causes high spending on infrastructure, manufacturing-capacity, and real estate to continue long after this spending has ceased to be productive.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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