If a Country Increases Its Saving Rate,which of the Following

question 40

Multiple Choice

If a country increases its saving rate,which of the following permanently grow at a higher rate?

• A)productivity and real GDP per person
• B)productivity but not real GDP per person
• C)real GDP per person but not productivity
• D)neither real GDP per person nor productivity

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Cost Behaviour

The way in which a cost changes or reacts in relation to changes in business activity levels.

Variable Selling Expenses

Sales-related costs that vary directly with the volume of sales, such as commissions and shipping charges.

Contribution Approach

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated according to organizational functions.