2. For a developing country to grow, it needs capital.
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2. For a developing country to grow, it needs capital. The major source of capital in most countries is domestic savin
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2. 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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