Suppose That a Country Increased Its Saving Rate

question 73

Multiple Choice

Suppose that a country increased its saving rate.In the long run it would have

• A)higher productivity,and another unit of capital would increase output by more than before.
• B)higher productivity,but another unit of capital would increase output by less than before.
• C)lower productivity,and another unit of capital would increase output by more than before.
• D)lower productivity,but another unit of capital would increase output by less than before.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering Limited liability to its shareholders, and having the ability to raise capital through issuing stock.

Non-profit

A non-profit organization is one that operates for a collective, public or social benefit, rather than to make money for its owners or investors.

Sole Proprietorship

A type of business structure owned and run by one individual where there is no legal distinction between the owner and the business.

Multiple Owners

A business structure where two or more individuals share ownership and responsibilities of managing the business.