An Increase in Saving

question 96

Multiple Choice

An increase in saving

• A) decreases the amount of resources available for investment.
• B) increases the amount of resources that can be devoted to the purchase of capital goods.
• C) reduces real GDP by decreasing consumption.
• D) increases a country's present standard of living.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate view of economic growth over time.

Environmental Costs

Expenses associated with the damage to the environment caused by a company's operations, including cleanup costs, fines, and the costs to comply with environmental regulations.

Qualitative Improvements

Enhancements to the characteristics, features, or performance of a product or service that increase its value to consumers.

National Product

The total value of all goods and services produced by a country's economy, including both domestic and foreign production.