Countries with Higher Saving Rates May Have Higher Equilibrium Growth

question 35

Multiple Choice

Countries with higher saving rates may have higher equilibrium growth rates since

• A)people who save more also are more industrious
• B)higher income allows for more savings
• C)a higher saving rate allows for more investment in human capital which ultimately enhances economic growth
• D)having more capital equipment is more important than having better capital equipment
• E)none of the above

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Definitions:

Division of Labour

The allocation of different tasks to different people or groups in an organization or economy, aimed at increasing efficiency and productivity.

Standard Rules

Established guidelines or procedures that are followed within an organization to maintain consistency and order.

Safety Needs

Fundamental requirements for personal security, protection, and stability, as identified in Maslow's hierarchy of needs.

Stability

The condition in which a system, such as an economy or ecological system, remains consistent and balanced over time.