The AK Growth Model Indicates That Countries with High Saving

question 22

Multiple Choice

The AK growth model indicates that countries with high saving rates experience ________,and countries with low saving rates experience ________.

• A) high growth rates; low growth rates
• B) low growth rates; high growth rates
• C) positive growth rates; no growth
• D) negative growth rates; positive growth rates

---

Definitions:

Business Inventories

The stocks of goods and materials that firms hold for the purpose of sale or input into production, often used to meet consumer demand or continue production.

Welfare Benefits

Financial assistance provided by the government to individuals or groups in need, aiming to support well-being and economic stability.

Stocks And Bonds

Stocks and bonds are financial instruments; stocks represent ownership shares in a company, while bonds are debt securities issued by entities like governments or corporations to raise capital.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as a broad measure of economic activity.