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ECO/204 ECO/204 WEEK 5 DQ2 -EQUITY VERSUS GROWTH PRINCIPLES OF MICROECONOMICS -ANSWER KEY

ECO/204 ECO/204 WEEK 5 DQ2 -EQUITY VERSUS GROWTH PRINCIPLES OF MICROECONOMICS -ANSWER KEY
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ECO/204 WEEK 5 DQ2 -EQUITY VERSUS GROWTH PRINCIPLES OF MICROECONOMICS

Discussion 2 – Equity versus Growth

For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the distribution of income. Comment on this trade-off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?

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