标题: effects of savings rate on economic growth [打印本页] 作者: Kingpin804 时间: 2013-5-4 09:23 标题: effects of savings rate on economic growth
Hi, on schweser notes book 2 P.138, there is a table discussing the effects of various changing factors on economic growth.
It says when saving rate increased, Economic growth will increase, and the explanation is more capital available at reduced interest rates. Increased investment in capital stock.
I am quite confused about this. In my opinion, when savings rate increased, people will prefer savings to investment so there is reduced investment in capital stock and economic growth slows down.
Could anyone explain this? Thank you.
