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

question 13

Multiple Choice

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

• A)Both productivity growth and income growth increase.
• B)Only productivity growth increases.
• C)Only income growth increases.
• D)Neither productivity growth nor income growth increase.

---

Definitions:

Least Squares Regression

A statistical method for estimating the relationships among variables.

Chemical Process

A method or means of changing one or more chemicals or chemical compounds, often involving a series of steps with physical and/or chemical changes.

Significance Level

The probability of rejecting the null hypothesis when it is true, commonly denoted by alpha.

Predictor Variables

Independent variables in statistical models that are used to predict outcomes of interest.