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:

Teams

Groups of individuals working together towards a common goal or project, combining their skills and resources to achieve it.

Communication Tools

Instruments or technologies used to convey information or facilitate interaction between individuals or groups, such as email, social media, or messaging apps.

Lower Performance Levels

Reduced effectiveness or efficiency in carrying out tasks or achieving objectives, compared to expected standards.

Solution Acceptance

The process of formally agreeing to the use or implementation of a proposed solution.