If a Country's Saving Rate Increases,which of the Following Happens

question 147

Multiple Choice

If a country's saving rate increases,which of the following happens in the long run?

• A)Productivity does not change.
• B)Real GDP per person decreases.
• C)Real GDP per person does not change.
• D)Productivity increases.

---

Definitions:

Risk

The possibility of loss or injury, or the variability of returns associated with a given investment or financial activity.

Contributed Capital

The total value of cash or other assets that shareholders have given a company in exchange for stock, also known as paid-in capital.

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively a company uses its assets to generate earnings.

Liabilities

Financial obligations or debts that a company or individual owes to others.