The majority of economists believe that policies that reduce the saving rate will reduce long-run living standards.

Question

Quizplus · Accepted Answer

Economists generally agree that higher savings rates contribute to higher investment levels, which in turn fuel productivity improvements and economic growth. Reducing the saving rate can lower the funds available for investment, potentially hindering economic growth and reducing long-run living standards.

The Majority of Economists Believe That Policies That Reduce the Saving