Suppose Mexico Increases Its Saving Rate

question 116

Multiple Choice

Suppose Mexico increases its saving rate. Which of the following will happen in the long run?

• A)The growth rates of productivity and real GDP per person will increase.
• B)Productivity and real GDP per person will increase.
• C)The growth rate of productivity will increase, and real GDP per person will increase.
• D)Productivity will increase, and the growth rate of real GDP per person will increase.

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Definitions:

Behaviorism

A theoretical orientation based on the premise that scientific psychology should study only observable behavior, emphasizing the effects of environment on behavior.

Logical Evaluation

The process of examining statements, hypotheses, or arguments critically and systematically using reasoning and logic to assess their validity or soundness.

Reason

The mental capacity of an individual to apply logic in analyzing and solving problems, and in making decisions or forming judgments.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.