It Is Likely That a Small Increase in a Country's

question 98

Multiple Choice

It is likely that a small increase in a country's saving rate will have

• A) a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time.
• B) a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth.
• C) a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate.
• D) a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.

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Definitions:

Asch Experiment

A social psychology experiment by Solomon Asch studying if and how individuals yielded to or defied a majority group and the effect of such influences on beliefs and opinions.

Group Conformity

The phenomenon where individuals adjust their behaviors, attitudes, or beliefs to match those of the group to which they belong, often due to real or perceived pressure.

Group Size

The number of individuals forming a social group or gathering, which can influence the group's dynamics, interactions, and outcomes.

Specific Purpose

A distinct aim or objective for which something is used, created, or exists.