In the early 1990s, which nation took the lead in driving up ...

[mckennatimberlake]

In the early 1990s, which nation took the lead in driving up European interest rates?
 
  A) Spain
  B) France
  C) Germany
  D) England
  E) none of the above

Question 2

Briefly explain what effect a reduction in the saving rate will have on growth.
 
  What will be an ideal response?

[Kaytorgator]

Answer to Question 1

E

Answer to Question 2

A reduction in the saving rate will reduce investment, capital and output. During the adjustment process, the rate of growth of output will be negative. However, at some point, I, K and Y will no longer fall. So, the reduction in the saving rate will not have a permanent effect on the rate of growth of output.

[mckennatimberlake]

Thanks for the timely response, appreciate it

[kthug]

YES! Correct, THANKS for helping me on my review