If the Aggregate Saving in an Economy Is $1,750 and the GDP

question 99

Multiple Choice

If the aggregate saving in an economy is $1,750 and the GDP of the economy is $55,000,then the saving rate in the economy is ________.

• A) 1.8 percent
• B) 3.18 percent
• C) 8.96 percent
• D) 10 percent

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Definitions:

Account Balances

The total amount of money in an account at a certain point in time, which can represent assets or liabilities depending on the account type.

Temporary Accounts

Accounts that are cleared out at the end of each accounting period, including revenues, expenses, and dividends accounts.

Permanent Accounts

Balance sheet accounts that carry their ending balances into the next accounting period, including assets, liabilities, and equity accounts.