Which of the Following Would Explain Why Higher Savings in an Economy

question 95

Multiple Choice

Which of the following would explain why higher savings in an economy do not always lead to higher investments?

• A) Domestic savings in an economy could be lent to firms overseas.
• B) The financial services industry could be highly deregulated.
• C) The individuals in the economy could have a high marginal propensity to save.
• D) The savings could be used to increase the ratio of capital per worker.

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Definitions:

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The process of inhaling oxygen and exhaling carbon dioxide from the atmosphere, essential for life.

Functional Death

The absence of a heartbeat and breathing.

Cultural Conceptions

The collective beliefs and values that define and interpret various aspects of a culture, shaping behaviors, norms, and customs.

Hospice Care

A type of care designed to provide comfort and support to individuals in the final phase of a terminal illness, focusing on palliative care rather than curative treatment.