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:

Liters

A unit of volume in the metric system, equivalent to 1,000 cubic centimeters or approximately 0.26 gallons.

Centimeter

A unit of length in the metric system, equivalent to one hundredth of a meter, used commonly to measure small distances.

Inches

A unit of length in the Imperial and United States customary systems, equivalent to 1/12 of a foot.

Microgram

A unit of mass equal to one millionth of a gram.