If the Saving Rate Increases, a Country's Growth Rate of Real

question 71

Multiple Choice

If the saving rate increases, a country's growth rate of real GDP per hour of labor ________ and capital per hour of labor ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

---

Definitions:

Stare Decisis

A legal principle that dictates courts should follow precedents set in previous case law when making decisions.

U.S. Supreme Court

The highest federal court in the United States, with ultimate judicial authority to interpret and decide on federal constitutional issues.

Rigidly

Rigidly refers to something done in a very strict or inflexible manner.

Decisions

Refers to the conclusions or judgments reached by individuals, groups, or legal bodies after consideration of relevant facts and law.