Solution-Poor category to the middle class category

Poor category to the middle class category

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Reference no: EM131424016

Suppose that all growth occurs by moving people from the poor category to the middle class category. Will the savings rate rise over time or fall? Using the Harrod-Domar modeland assuming that population growth is zero and all other variables are exogenous, predictwhether the resulting growth rate will rise or fall over time.

Reference no: EM131424016

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Poor category to the middle class category

Reference no: EM131424016

Reference no: EM131424016

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