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Why Is the Effect of Saving So Controversial to Economists

Question 67

Multiple Choice

Why is the effect of saving so controversial to economists?


A) Increased saving always has an unambiguously positive effect on the economy
B) Increased saving always has an unambiguously negative effect on the economy
C) Increased saving may hurt the economy in the short run but help it in the long run
D) Decreased saving my hurt the economy in the short run but help it in the long run
E) Because different schools of economic thought use different definitions

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