02 May Question: The experience of Asia from 1960 to the end of the 20th century suggests that higher investment r…
The experience of Asia from 1960 to the end of the 20th century suggests that higher
investment rates
| lead to excess capacity and long-term unemployment | ||
| can stimulate economic growth until the steady state is reached | ||
| reduce the rate of economic growth in the short run and increase it in the long run | ||
| are not influence by domestic saving or interest rates | ||
| cannot be sustained because they ultimately induce higher depreciation rates |
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