Other Things the Same, If a Country Increased Its Saving

question 46

Multiple Choice

Other things the same, if a country increased its saving rate what would that country likely have in 40 years?

• A) higher productivity and a higher growth rate of real GDP
• B) higher productivity but not a higher growth rate of real GDP
• C) the same productivity and growth of real GDP it began with
• D) higher productivity growth rate and higher real GDP

---

Definitions:

Increasing-Cost Industry

An industry in which production costs rise as the industry's output increases, often due to the input costs and resource limitations.

Increasing-Cost Industry

An industry in which the costs of production increase as the output expands, usually due to factors like shortages of resources or increased prices of inputs.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a greater than proportional increase in output, often resulting in economies of scale.