In the long run, a higher saving rate:

In the long run, a higher saving rate:

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 In the long run, a higher saving rate:

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does not lead to a higher level of income because of deterioration in labor productivity.

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always leads to a higher level of productivity because of increasing returns to scale. 

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always leads to a higher growth rate of output because of improvement in the stock of human capital. 

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does not always lead to a higher growth rate of output because of diminishing returns to capital.

 
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