A Reduction in a Country's Saving Rate Will Tend to Cause

question 101

Multiple Choice

A reduction in a country's saving rate will tend to cause which of the following in the long run?

• A) an increase in the standard of living
• B) a reduction in economic growth
• C) an increase in labor productivity
• D) an increase in per capita real GDP

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Definitions:

Productivity

The rate at which goods or services are produced, often considered in terms of output per unit of input.

Dexterity

Skill in performing tasks, especially with the hands.

Spearman's Rank Correlation

A nonparametric measure of the strength and direction of association that exists between two variables measured on at least an ordinal scale.

Lab Time

The allocated or spent periods within a laboratory setting for conducting experiments or research.