Other Things Being Constant, Countries with Higher Rates of Saving

question 90

Multiple Choice

Other things being constant, countries with higher rates of saving

• A) will have smaller GDPs than countries with lower rates of saving.
• B) will have higher rates of investment, but slower growth.
• C) will have higher rates of investment and growth.
• D) will be operating at less than full employment and potential output.

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Definitions:

Credit Unions

Cooperative financial institutions owned and controlled by their members, providing savings accounts, loans, and other financial services to members.

Depository Financial Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Secondary Market

Collection of financial markets in which previously issued securities are traded among investors.

Debenture

Unsecured corporate bond.