Other Things the Same,if a Country Raises Its Saving Rate,then

question 11

Multiple Choice

Other things the same,if a country raises its saving rate,then in the long run

• A)both the level and growth rate of real GDP are unchanged.
• B)the level of real GDP is higher but the growth rate of real GDP is unchanged.
• C)both the level and growth rate of real GDP are higher.
• D)None of the above are correct.

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Definitions:

Foreign Exchange Gain

Profit derived from the appreciation of one currency against another in the context of foreign exchange trading or transactions.

Foreign Exchange Loss

A loss resulting from the devaluation of the home currency against a foreign currency in transactions.

Forward Exchange Contract

A financial agreement to exchange a set amount of currencies at a specified rate on a predetermined future date.