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Business, 21.09.2020 14:01 smrichardson0220

Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, this leads to (faster or slower) growth in productivity because workers will have (more or less) equipment with which to work. a) True or False: Only factory owners will benefit from the higher productivity because they will receive a return on their additional investment.
b) True or False: Society receives a "free lunch" when it builds new factories.

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