It Is Likely That a Small Increase in a Country's

question 98

Multiple Choice

It is likely that a small increase in a country's saving rate will have

• A) a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time.
• B) a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth.
• C) a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate.
• D) a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.

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Definitions:

Largest Living Generation

A demographic term often used to describe the population segment with the highest number of living members at a given time.

Millennials

The generation of people born approximately between the early 1980s and late 1990s to early 2000s, known for their familiarity with technology and digital environments.

Nearing Retirement Age

The stage in a person's life when they are approaching the age at which they are eligible to retire from work.

Baby Boomers

A demographic group composed of individuals born approximately between 1946 and 1964, known for being a significantly large generation.