Other Things Being Equal, a Country with a High National

question 37

Multiple Choice

Other things being equal, a country with a high national saving rate may have a long- run growth rate because more saving increases the .

• A)high; availability of funds, thus lowering the interest rate
• B)high; wealth of people and increases future consumption
• C)low; unemployment and decreases wages in the long run
• D)high; interest rate and encourages more investment
• E)low; consumption in the long run

---

Definitions:

Balance Theory

A psychological theory proposing that individuals strive for internal consistency among their beliefs, attitudes, and opinions, forming a balanced state in interpersonal relationships.

Cognitive Consistency

The psychological concept that suggests that individuals prefer their beliefs, attitudes, and perceptions to be harmonious and consistent with each other.

Self-Perception

An individual's understanding and evaluation of their own personality, characteristics, and behaviors.

Positive Attitude

A mental disposition that reflects expectations of favorable outcomes or highlights positive aspects of a situation.