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Answer to Question #153092 in Macroeconomics for GEM
Question #153092
What is the role of saving in economic growth? How can you better
contribute to the economy, by saving or by investing? Defend your answer.
contribute to the economy, by saving or by investing? Defend your answer.
Expert's answer
Savings can help finance higher levels of investment and boost productivity over the longer term. By saving more, it enables the banks to lend more to firms for investment.
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