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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