Questions 1: Please explain the impact of interest rate on residents’ savings and investment. (how the rising or decreasing of interest rate influence national savings and investments.
Question 2: Please explain what is the crowding out effect and which factors will influence the crowding out effects.
Question 3: Following policies are believed can foster economic growth; please discuss the disadvantage of each.
1) put more resources in producing the capital.
2) Encourage foreign investment.
3) Promote education, and enhance human capital.
4) Protect property rights and promote political stability.
5) Encourage free trade;
6) Reduce population growth rates,
7) Encourage research and development.
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