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a) Explain how and why an increase in the level of savings affects the long-run growth...

  1. a) Explain how and why an increase in the level of savings affects the long-run growth of real income. b) Explain the role of diminishing returns, and what this implies for relative growth rates across countries. c) Carefully describe and explain one government policy that could increase the long-run growth of real income.

NOTE: (Please answer all parts, it's the same question. NO Handwriting please, I have difficulty understanding the handwritings, unfortunately.)

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