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suppose the people in the US increase their savings rage

suppose the people in the US increase their savings rage

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Capital accumulation is essential to achieve higher economic growth. Capital can be accumulated only when the investment is made. In order to make investments, firms need to have access to loanable funds so that they can borrow and expand businesses. Higher savings increases the availability of loanable funds. Therefore, higher savings result in higher investment, higher capital accumulation and higher economic growth.

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