When a Country Saves a Larger Portion of Its GDP

question 79

Multiple Choice

When a country saves a larger portion of its GDP, will it have more or less investment?

• A) It will have less investment, and so it will have more capital and higher productivity.
• B) It will have less investment, and so it will have less capital and higher productivity.
• C) It will have more investment, and so it will have more capital and higher productivity.
• D) It will have more investment, and so it will have less capital and higher productivity.

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Definitions:

Company-specific

Refers to information, events, or characteristics that only affect a single company, not the industry as a whole or the market at large.

Unsystematic Events

Specific, unpredictable events that affect a single company or a small group of companies, not the entire market.

Investment Risk

The potential for loss of value in an investment, often measured by the variability of returns associated with a given asset.

Risk-averse Investor

A risk-averse investor is someone who prefers to minimize financial risk and is likely to choose investments with lower potential returns to avoid losing money.