Question: 2. Consider the following statement: The Solow model shows that the saving rate does not affect the growth rate in the long run, so we

2. Consider the following statement: “The Solow model shows that the saving rate does not affect the growth rate in the long run, so we should stop worrying about the low U.S. saving rate. Increasing the saving rate wouldn’t have any important effects on the economy.” Explain why you agree or disagree with this statement?

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