A Higher Savings Rate That Leads to an Increase in the Capital

question 197

Multiple Choice

A higher savings rate that leads to an increase in the capital stock

• A) leads to higher interest rates.
• B) leads to increases in labor productivity.
• C) immediately decreases investment.
• D) is associated with a decrease in the rate of growth of the population.

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Definitions:

Host-Country National

An individual who is a citizen of the country in which an international company operates, as opposed to an expatriate who originates from the company's home country.

Parent-Country National

An employee who is a citizen of the country in which the employing organization's headquarters is located, working in a branch or subsidiary in another country.

Third-Country National

An individual who is working in a country that is neither their home country nor the country of the company's headquarters to which they are assigned.

International Organization

An organization that sets up one or a few facilities in one or a few foreign countries.