If a Country's Saving Rate Increases, Which of the Following

question 72

Multiple Choice

If a country's saving rate increases, which of the following happens in the long run?

• A)Its productivity is higher, but real GDP per person is not higher.
• B)Its real GDP per person is higher, but productivity is not higher.
• C)Its productivity and real GDP per person are both higher.
• D)Neither its productivity nor real GDP per person are higher.

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Definitions:

Plant Construction Costs

refer to the expenses incurred in building a new manufacturing facility, including materials, labor, site development, and equipment.

Capacity Expansion

Capacity expansion is the process of increasing the production capability of a facility to meet expected demand increases.

Truckload

A freight mode where a truck is filled to capacity with goods from a single shipper, optimizing transportation efficiency.

Network Design Models

Analytical frameworks and methods used to optimize the layout, connections, and functionality within supply chains and logistics networks.