If a Country Increases Its Saving Rate in the Long

question 379

Multiple Choice

If a country increases its saving rate in the long run

• A)K/L and productivity will be higher.
• B)K/L will be higher but productivity will not be higher.
• C)K/L will not be higher but productivity will be higher.
• D)neither K/L nor productivity will be higher.

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Definitions:

International Body

An organization composed of members from multiple countries created to address global issues and facilitate cooperation across borders.

GATT

General Agreement on Tariffs and Trade, an international treaty designed to reduce trade barriers and promote international commerce.

Unilateral Approach

A policy or action undertaken by a single government or organization independently, rather than by agreement with others.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers such as tariffs, quotas, or legislation.