An Increase in National Saving Reduces the Interest Rate and So

question 166

True/False

An increase in national saving reduces the interest rate and so reduces net capital outflow.

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Definitions:

Opportunity Costs

The value of the next best alternative that is foregone as a result of making a decision.

Resources

Various elements needed for the production of goods and services, often categorized into natural resources, human resources, and capital resources.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Worker Productivity

The amount of goods and services produced per hour worked by an employee.