A Higher Saving Rate Leads to Faster Growth Because

question 79

Multiple Choice

A higher saving rate leads to faster growth because

• A) more saving produces greater additions to capital per hour of labor, raising real GDP per person.
• B) people could consume more of an economyʹs output.
• C) capital would wear out faster.
• D) population growth would accelerate.

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Definitions:

Electronics Company

A business involved in the manufacturing, designing, and/or selling of electronic devices and components.

Independent Events

Two or more events whose outcomes are not affected by each other, meaning the occurrence of one event does not influence the occurrence of the other.

Golf Balls

Small, dimpled balls designed and constructed for use in the game of golf, optimized to fly far and straight when struck by golf clubs.

Pro Shop

A specialty retail store located within a sports venue, typically selling equipment and merchandise related to the sport or activity hosted at the venue.