If a Country's Saving Rate Increases,then in the Long Run

question 173

Multiple Choice

If a country's saving rate increases,then 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.

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Definitions:

Price Competition

A market condition where businesses focus on undercutting competitors' prices to attract customers.

Profit Declines

A decrease in the difference between revenues earned and expenses incurred over a given period.

Analog TVs

Television systems that use analog signals to transmit video and audio as opposed to digital formats; now largely obsolete with the advent of digital broadcasting.

Product Life Cycle

The progression of a product through stages from introduction to growth, maturity, and decline.