As an Economy Adjusts to an Increase in the Saving

question 28

Multiple Choice

As an economy adjusts to an increase in the saving rate,we would expect output per worker

• A)to increase at a constant rate and continue increasing at that rate in the steady state.
• B)to increase at a permanently higher rate.
• C)to decrease at a permanently higher rate.
• D)to return to its original level.
• E) none of the above

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Definitions:

Marketing Channel

Pathways or routes through which goods and services travel from the producer or manufacturer to the end consumer, possibly including intermediaries.

Product

An item or service created through a process and available for exchange or sale to satisfy a need or want.

Service

An intangible commodity that involves providing labor, support, or a facility for a fee, where the benefit is realized without the need to own a physical product.

Middleman

An intermediary or agent between producers and consumers who facilitates transactions or the distribution of products.