Does It Matter How Much a Developing Country Saves? Explain

question 20

Essay

Does it matter how much a developing country saves? Explain why or why not.Discuss theoriesand evidence on whether developing countries can increase the net savings rate in the economy through public policy.In particular,consider whether this can be accomplished through increasedor decreased taxation of one or more types,and increased or decreased government spending ofone or more types.

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Definitions:

Psychosexual Theory

A theory by Sigmund Freud that proposes human development is driven by the libido as it shifts between different body zones at different stages of early life.

4-Year-Old

Describes a child typically in the early childhood period, showing rapid development in language, cognition, and social skills.

Phallic Stage

A stage in Freudian psychosexual development, occurring from approximately 3 to 6 years of age, where children's libido (sexual energy) is focused on their genitalia.

Mechanistic Researcher

A scientist who explores the fundamental processes and workings underlying a particular phenomenon or system, focusing on its components and functions.