A Reduction in a Country's Saving Rate Will Tend to Cause

question 101

Multiple Choice

A reduction in a country's saving rate will tend to cause which of the following in the long run?

• A) an increase in the standard of living
• B) a reduction in economic growth
• C) an increase in labor productivity
• D) an increase in per capita real GDP

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Definitions:

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes or rewards.

Instrumentality

The belief or expectation that performing a certain behavior or achieving a particular level of performance will lead to a desired outcome or reward.

Reinforcement Theory

Is a process theory, usually associated with B. F. Skinner, which proposes that all behavior is a function of its consequences.

Fixed Interval Schedules

Are interval schedules in which the amount of time that must pass before a reward is given is constant over time.