Suppose That a Country Increased Its Saving Rate

question 73

Multiple Choice

Suppose that a country increased its saving rate.In the long run it would have

• A)higher productivity,and another unit of capital would increase output by more than before.
• B)higher productivity,but another unit of capital would increase output by less than before.
• C)lower productivity,and another unit of capital would increase output by more than before.
• D)lower productivity,but another unit of capital would increase output by less than before.

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Definitions:

Federation

An organization or group within which smaller divisions or parties agree to some central authority or governance.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Single Corporation

An individual corporate entity, usually distinguished from a conglomerate or holding company owning multiple subsidiaries.

Autonomous

Having the ability to operate independently or self-govern without external control or influence, often used in reference to machines, systems, or organizations.