Statement I: The American economy has become much more competitive since the mid 1980s because of vast improvements in our educational system.
Statement II: Our exports have become much more competitive in recent years because of our high saving rate and low cost of capital.

Question

Quizplus · Accepted Answer

The American economy's competitiveness since the mid-1980s is not solely due to improvements in the educational system; factors such as technological advancements and globalization also play significant roles. Statement II is incorrect because the U.S. has historically had a low saving rate compared to other developed countries, which does not directly lead to a more competitive export sector.

Statement I: the American Economy Has Become Much More Competitive