Other Things the Same,if a Country Increased Its Saving Rate,in

question 86

Multiple Choice

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

• A)higher productivity,and a higher growth rate of real GDP.
• B)higher productivity,but not a higher growth rate of real GDP.
• C)the same productivity and growth of real GDP it began with.
• D)None of the above is correct.

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Definitions:

Opportunity Cost

The penalty of overlooking the closest preferable alternative in the course of decision-taking.

Satisfaction

The feeling of pleasure or contentment arising from meeting one's needs or expectations.

Rational Choice

A theory in economics that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Costs and Benefits

An analysis approach that compares the total costs and total benefits associated with a particular action or decision to determine its feasibility or worth.