According to Studies Using International Data,an Increase in the Saving

question 31

Multiple Choice

According to studies using international data,an increase in the saving rate

• A)does not increase the growth rate of output.
• B)increases the growth rate of output for a few years.
• C)increases the growth rate of output for about a decade.
• D)increases the growth rate of output for several decades.

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Definitions:

Risky

Characterized by or involving uncertainty, potential danger, or financial loss.

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage, that lenders charge borrowers over a specified period.

Values of Bonds

The worth or price of a bond, influenced by interest rates, the bond's credit quality, and the duration until maturity.

Perpetuities

A financial instrument that provides an infinite stream of identical payments.