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The Fact That the Observed Link Between Saving and Investment

Question 59

Multiple Choice

The fact that the observed link between saving and investment in Canada's open economy is weak implies that policies like the Registered Retirement Savings Plan (RRSP) may stimulate


A) savings and will necessarily produce higher economic growth.
B) savings and higher average labour productivity growth.
C) savings but will not necessarily produce higher rates of investment.
D) investment but will not necessarily produce higher private savings.
E) investment but will not necessarily produce higher public savings.

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