Other Things Being Constant, Countries with Higher Rates of Saving

question 90

Multiple Choice

Other things being constant, countries with higher rates of saving

• A) will have smaller GDPs than countries with lower rates of saving.
• B) will have higher rates of investment, but slower growth.
• C) will have higher rates of investment and growth.
• D) will be operating at less than full employment and potential output.

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Definitions:

Economic Value

An estimation of the benefit provided by a good or service to an economic agent.

Interest Rate

The percentage at which interest is charged or paid on borrowed funds, typically expressed as an annual percentage rate.

Equivalent

Identical in worth, quantity, role, significance, or rank.

Equivalent Values

Items or amounts that are equal in value, function, or meaning.