For a Country in the Process of Development,a High Saving

question 25

Multiple Choice

For a country in the process of development,a high saving rate is generally

• A)helpful,because it makes resources available for investment.
• B)helpful,because it causes a rapid growth of aggregate demand and thus makes it easier to capture economies of scale.
• C)harmful,because it causes a stagnation of aggregate demand.
• D)harmful,because it promotes imports of consumer goods.
• E)unimportant;there is no observable relationship (either positive or negative)between saving and growth.

---

Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Quantity Supplied

The amount of a good or service that sellers are willing and able to sell at a particular price over a specified period.

Quota

An official constraint on trade that controls the volume or monetary amount of items permitted for export or import during a designated period.

Quantity Restriction

Limits on the amount of a particular good that can be produced, sold, or purchased.