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How can the savings gap be plugged?
Low savings are a barrier type to growth. All developing countries have low incomes therefore low savings. A savings gap can be met through:
• Foreign aid: the UN target is for developed countries to offer 0.7% of Gross Domestic Product as aid.
• Foreign direct investment as like through multinationals
• Surplus through international trade
• Decreased domestic expenditure creates further savings.
what is the short run and long run effects of a new idea creating by a restaurateur i.e home cooking services in the perfect competitive market?
There are many benefits to a free market economy. They range from the moral issues to the practical issues. We will deal mainly with the practical ones. Unprecedented innovati
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