In the Long Run,a Higher Saving Rate

question 59

Multiple Choice

In the long run,a higher saving rate

• A)cannot increase the capital stock.
• B)increases the growth rate of income.
• C)increases the growth rate of productivity.
• D)None of the above is correct.

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Definitions:

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate in an economy.

Profit-maximizing

The process or strategy of adjusting production and sale conditions to achieve the highest possible profit margin.

Purely Competitive

A state of the market where products are identical across sellers, barriers to entry are minimal, and the actions of any single buyer or seller have no notable impact on the market.

Product Price

The amount of money required to purchase a good or service, typically influenced by factors such as cost of production, market demand, and competition.