A Higher Saving Rate Leads to Faster Growth Because

question 83

Multiple Choice

A higher saving rate leads to faster growth because

• A) more saving produces greater additions to capital per hour of labor, raising real GDP per person.
• B) capital would wear out faster.
• C) people could consume more of an economy's output.
• D) population growth would accelerate.

---

Definitions:

Directional

Refers to hypotheses in research that predict not only the existence of a relationship between variables but the direction of that relationship as well.

Non-directional

A type of hypothesis that does not specify the direction of the expected relationship between variables.

Standard Error

A measure indicating the amount of variation or dispersion of a set of values; specifically, it reflects how much sampling variability a statistic possesses.

Variability

The degree to which data points in a statistical distribution or data set diverge from the mean value.