If a Country's Saving Rate Increases,then in the Long Run

question 50

Multiple Choice

If a country's saving rate increases,then in the long run

• A)productivity is higher but real GDP per person is not higher.
• B)real GDP per person is higher but productivity is not higher.
• C)productivity and real GDP per person are both higher.
• D)neither productivity nor real GDP per person is higher.

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Definitions:

Incremental Value

The additional value generated by undertaking a new project or investment, measured by the difference in cash flows or profits with and without the investment.

Market Value

The total worth of an asset or company based on the current price at which it can be sold in the market.

Incremental Value

The additional value created by undertaking a specific action or project, calculated as the difference between the value with the action and without it.

All-Stock Deal

A type of acquisition where the buyer company purchases another company using its own stock as currency, instead of cash.