Other Things the Same, a Country That Increases Its Savings

question 131

Multiple Choice

Other things the same, a country that increases its savings rate will have

• A)higher future capital and higher future real GDP per person.
• B)higher future capital but not higher future real GDP per person.
• C)higher future real GDP per person but not higher future capital.
• D)neither higher future capital nor higher future real GDP per person.

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Definitions:

Utility Maximizing

The economic principle that individuals and firms strive to achieve the highest satisfaction or benefit from their resources and choices.

Industry Demand Curve

A graphical representation showing the quantity of a product that consumers in an industry are willing and able to purchase at each price over a period of time.

Labor Demand Curves

Graphs showing the relationship between the wage rate and the quantity of labor that employers are willing to hire at that rate.

Competitive Labor Market

A market where there are many employers and job seekers, and the wages are determined by supply and demand for labor.