What Is the Effect of a Higher Saving Rate in the Long

question 59

Multiple Choice

What is the effect of a higher saving rate in the long run?

• A) It decreases the capital stock.
• B) People must consume less in the future.
• C) It increases productivity.
• D) It leads to higher growth in real GDP.

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Definitions:

Respondent Conditioning

A form of learning in which a stimulus becomes associated with a consequence, also known as classical conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Memory

Ability to recall or recognize previous experience.

Previous Experience

An individual's past encounters or interactions that influence one's perceptions, behaviors, and learning processes.