Suppose There Is a Reduction in the Saving Rate

question 5

Multiple Choice

Suppose there is a reduction in the saving rate.This decrease in the saving rate will cause a reduction in which of the following once the economy reaches its new steady state equilibrium?

• A)growth rate of output
• B)growth rate of capital
• C)growth rate of capital per worker
• D)all of the above
• E) none of the above

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Definitions:

Straight Commission Plan

A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.

Percentage Commission

A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.

Intrinsic Rewards

The personal satisfaction and enjoyment derived from completing a task or achieving a goal, independent of external rewards or recognition.

Extrinsic Rewards

Rewards given to employees that are external to the job itself, such as pay, benefits, bonuses, and promotions, aimed at motivating employees' performance.