If a Country's Saving Rate Increases, What Happens in the Long

question 94

Multiple Choice

If a country's saving rate increases, what happens in the long run?

• A) Productivity does not change.
• B) Real GDP per person decreases.
• C) Real GDP per person does not change.
• D) Productivity increases.

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Definitions:

Stockholders' Equity

Ownership equity represented by the leftover interest in a corporation's assets once its liabilities have been subtracted.

Account Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for.

Total Liabilities

Total Liabilities represent the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Note Payable

A financial obligation or loan evidenced by a written promise to pay a specific amount on a future date or over a certain period.