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CaHeK987 [17]
4 years ago
15

After a report that saving in the united states is at an all time low, jeopardizing many family's retirement plans, americans be

gin to save in an effort to ensure they are not the ones without the ability to retire. explain the impact on economic growth.
Business
1 answer:
Ivanshal [37]4 years ago
5 0
Savings usually have positive impacts on economic growth of a nation. Firstly, increase in the amount of money saved increase the amount of money that are available in the banks which can be used for investment purposes that will benefit the economy. Secondly, high saving rate in an economy increases the ability of that economy to recover from inflation and recession. Personally and nationally, saving helps to cope better with economic and financial down turns.  
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The likely effect of this law is that there will be a reduction on wages as employer's will try as much as possible to reducce cost incurred due to the health related compensation. Also, unemployment will increase and more workers will be hired "informally" and be paid surreptitiously in cash. This is because the cost of the employers will increase and they may need to lay some workers off.

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