A higher savings rate (portion of income saved) reduces interest rates and o increases investment and future growth. O r
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A higher savings rate (portion of income saved) reduces interest rates and o increases investment and future growth. O r
A higher savings rate (portion of income saved) reduces interest rates and o increases investment and future growth. O reduces investment, because the return is lower. o leaves investment unchanged, because investment depends on expected future sales O reduces investment because the demand for loanable funds shifts in O might raise or might lower interest rates, depending on the response by the Fed,
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