Suppose an Economy Experiences an Increase in Its Saving Rate

question 156

Multiple Choice

Suppose an economy experiences an increase in its saving rate.The higher saving rate leads to a higher growth rate of productivity

• A)in the short run,but not in the long run.
• B)in the long run,but not in the short run.
• C)in both the short run and the long run.
• D)in neither the short run nor the long run.

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Definitions:

Direct Competition

Businesses or products that offer similar services or goods targeting the same customer base.

Alternate Solutions

Different options or approaches available to solve a problem or achieve a goal.

Baby Boomers

The generation born between 1946 and 1964.

Consumer Spending

The total amount of money spent by households and individuals on goods and services.