A Higher Saving Rate Leads to Faster Growth Because

question 83

Multiple Choice

A higher saving rate leads to faster growth because

• A) more saving produces greater additions to capital per hour of labor, raising real GDP per person.
• B) capital would wear out faster.
• C) people could consume more of an economy's output.
• D) population growth would accelerate.

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Definitions:

Repetition

The action of repeating something that has already been said or written, often used for emphasis or to reinforce a concept.

Enumerated List

An ordered listing of items or points, often numbered or bulleted.

Bulleted List

An itemized list used for organizing information efficiently, each entry preceded by a symbolic bullet.

Deductively Organized

An approach to organization that starts with a general assertion or hypothesis and then presents specific evidence or examples to support it.