For This Question,assume That a Country Experiences a Permanent Increase

question 2

Multiple Choice

For this question,assume that a country experiences a permanent increase in its saving rate.Which of the following will occur as a result of this increase in the saving rate?

• A)a permanently faster growth rate of output
• B)a permanently higher level of output per capita
• C)a permanently higher level of capital per worker
• D)all of the above
• E) both B and C.

---

Definitions:

Loanable Funds

The money available for borrowing in the financial markets, derived from savings and supplied to borrowers at an interest.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry, ensuring market integrity, and protecting investors.

Investor Losses

The decrease in monetary value that investors experience in their investment portfolio due to market movements or poor investment decisions.

Fraud or Misrepresentation

Involves intentionally deceiving or misleading parties for financial gain or to damage them financially.