Other Things the Same, a Country That Increases Its Savings

question 131

Multiple Choice

Other things the same, a country that increases its savings rate will have

• A)higher future capital and higher future real GDP per person.
• B)higher future capital but not higher future real GDP per person.
• C)higher future real GDP per person but not higher future capital.
• D)neither higher future capital nor higher future real GDP per person.

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Definitions:

Cumulative Return

Cumulative return is the aggregate amount of money gained or lost by an investment over a set period, typically expressed as a percentage.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin; serves as a down payment on the investment.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Long Futures Position

Holding a futures contract that obligates the buyer to purchase the underlying asset at a specified price on a specified future date, typically anticipating a price rise.