What Is the Effect of a Higher Saving Rate in the Long

question 59

Multiple Choice

What is the effect of a higher saving rate in the long run?

• A) It decreases the capital stock.
• B) People must consume less in the future.
• C) It increases productivity.
• D) It leads to higher growth in real GDP.

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Deduction

An amount that is subtracted from an individual's gross income, decreasing the amount of taxable income.

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Deductions from gross income that occur before calculating the taxable income, specifically affecting the adjusted gross income on a tax return.

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