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:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage and financial health of the company.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, indicating the total resources.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including debts, accounts payable, and other liabilities.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.