Suppose That a Country Increased Its Saving Rate

question 73

Multiple Choice

Suppose that a country increased its saving rate.In the long run it would have

• A)higher productivity,and another unit of capital would increase output by more than before.
• B)higher productivity,but another unit of capital would increase output by less than before.
• C)lower productivity,and another unit of capital would increase output by more than before.
• D)lower productivity,but another unit of capital would increase output by less than before.

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Definitions:

Proximity

The physical or psychological closeness between people, objects, or ideas, influencing their interaction and relationships.

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits as causes of others' behaviors.

Personal Factors

Individual attributes such as personality, beliefs, and experiences that influence one's behavior and perceptions.

Peter Principle

A theory suggesting that people are promoted to their level of incompetence in a hierarchical organization.