How Will a High Level of Saving Impact Long-Run Economic

question 116

Multiple Choice

How will a high level of saving impact long-run economic growth?

• A)Saving will drive interest rates higher,and thereby increase the returns to investment and stimulate growth.
• B)Saving provides the source of investment capital that allows businesses to expand production and the economy to grow.
• C)Saving will reduce consumption,and thereby retard economic growth.
• D)Saving will reduce the funds available for investment and thereby retard entrepreneurship and economic growth.

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Definitions:

Caveat Emptor

Latin for "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, prescribing the rights and duties of buyers and sellers.

Competition Bureau

A governmental agency responsible for enforcing laws to ensure fair competition, preventing monopolies, and promoting consumer interests.

Law Enforcement

The activity of ensuring compliance with the laws of a jurisdiction, typically conducted by police and other agencies.