Business, 24.02.2020 22:28 banks9244

To what extent will low rates of saving in the United States limit the accumulation of physical capital? Low rates of saving will not limit the accumulation of physical capital as long as the country is also able to access and use savings from outside the country. Low rates of saving will limit the accumulation of capital because there will not be enough money available to pay for the physical capital. Low rates of saving will not limit the accumulation of physical capital because the government will raise taxes to pay for the new physical capital. Low rates of saving will limit the accumulation of physical capital because the only source of funding for capital accumulation is domestic saving.

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