Immigration and Growth (I'm confused)

[MMMark]

Thurs. 10/04/29 08:48 EDT
.post #89

[url=Immigration and Growth (I'm confused) - #14 by Esuric]

@Esuric

[/url]A higher population leads to an increased demand for final goods and services, which increases prices (relative or absolute terms) in the lower phases of production. This increases the interest rate (an increased demand for final goods and services means a reduced savings rate)

But only if the immigrant’s savings rate is less than the average savings rate, surely?

If the immigrant’s savings rate is equal to or greater than the average savings rate, then the increase in demand for final goods and services the immigrant causes does not mean a reduced savings rate.

Or have I missed something?