Which of the Following Statements Concerning National Saving Is True

question 65

Multiple Choice

Which of the following statements concerning national saving is true?

• A)A country's saving rate is unrelated to its growth rate.
• B)An increase in the rate of saving will lead to a reduction in consumption and therefore to both a short-run and a long-run decrease in national income.
• C)An increase in the rate of saving will cause an immediate increase in national income,but may cause a drop in national income in the long-run.
• D)An increase in the rate of saving will always be offset by a reduction in private investment.
• E)An increase in the rate of saving will lead to a short-run reduction in national income,but to higher economic growth in the long run.

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Definitions:

Comparative Advantage

An economic theory that suggests a country should produce and export goods in which it has a lower opportunity cost than other countries.

Temporary Advantage

An advantage or benefit that an organization holds for a short period of time, often due to a unique product, service, or situation.

Knowledge Dissemination

The process of spreading information and insights across different stakeholders, including individuals, organizations, and communities, to enhance understanding and application.