Because of __________, an Increase in the Saving Rate Leads

question 169

Short Answer

Because of __________, an increase in the saving rate leads to higher growth of income and productivity only for a while.

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Definitions:

Risk Premium

The additional return expected by an investor for holding a risky asset rather than a risk-free asset, compensating for the extra risk.

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Intellectual Capital

The intangible value of a company's assets such as knowledge, brand, reputation, and employee competence.