Other Things the Same,if a Country Raises Its Saving Rate,then

question 11

Multiple Choice

Other things the same,if a country raises its saving rate,then in the long run

• A)both the level and growth rate of real GDP are unchanged.
• B)the level of real GDP is higher but the growth rate of real GDP is unchanged.
• C)both the level and growth rate of real GDP are higher.
• D)None of the above are correct.

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Definitions:

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate or instrument.

Dividend Rate

The amount of dividend paid per share divided by the price per share, often expressed as a percentage, indicating the returns shareholders receive for each dollar invested in the company's stock.