Which of the Following Statements Concerning National Saving Is True

question 55

Multiple Choice

Which of the following statements concerning national saving is true?

• A)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.
• B)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.
• C)An increase in the rate of saving will always be offset by a reduction in private investment.
• D)A country's saving rate is unrelated to its growth rate.
• 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:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Managing Diversity

The practice of acknowledging, understanding, accepting, and valuing differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status in the workplace.

Organization Mosaic

An organizational structure metaphor that emphasizes the diverse and unique pieces (e.g., employees, departments) coming together to create a cohesive and functional whole.

Human Rights Legislation

Legislation that protects individuals from discrimination based on various grounds such as race, gender, disability, and religion.