Suppose a Country Were to Increase Its Saving Rate

question 173

Multiple Choice

Suppose a country were to increase its saving rate. In the long run, what would also increase?

• A) its income and productivity levels
• B) its income growth rate and productivity level
• C) its income level and productivity growth rate
• D) its income and productivity growth rates

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range or period.

Break-even Point

The production level or sales volume at which total revenues equal total expenses, leading to no profit or loss.

Unit Variable Cost

The cost that varies with each unit produced, including direct materials and labor, but does not include fixed costs.

Property Tax Rates

The percentage of a property's assessed value that is charged as tax by local governments to fund public expenses.