Suppose a Country Were to Increase Its Saving Rate

question 181

Multiple Choice

Suppose a country were to increase its saving rate.In the long run,which of the following would also increase?

• A)its income and productivity levels
• B)its income growth rate and productivity level
• C)its income level and productivity growth rate
• D)its income and productivity growth rates

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Definitions:

Historical Cost

The original monetary value of an asset or transaction, based on the amount paid or the value at the time it was acquired.

Financial Capital Maintenance

A concept in accounting where profit is measured as the increase in financial or monetary capital, ignoring changes in the purchasing power of money.

Net Assets

The total assets of a company minus its total liabilities.

Financial Flexibility

The ability of an entity to adapt its capital structure or operating strategies to respond to unforeseen needs, opportunities, or obligations.