The 'Golden Rule' of Saving Is

question 66

Multiple Choice

The 'golden rule' of saving is:

• A) the rate of saving that produces the minimum level of consumption per capita in the long-steady state.
• B) the rate of saving that produces the maximum level of production per capita in the long-steady state.
• C) the rate of saving that produces the maximum level of consumption per capita in the long-steady state.
• D) The rate of saving that produces the minimum level of investment per capita in the long-steady state.

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Definitions:

Societal Members

Individuals who constitute a society, participating in its culture, norms, and economic activities.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, freedom of entry and exit, and a homogeneous product, leading to efficient pricing.

Hula Hoops

A popular toy consisting of a large hoop that can be twirled around the waist, limbs, or neck.

Production Level

The quantity of goods or services produced in a given time period by a company, sector, or economy.