Countries with higher saving rates may have higher equilibrium growth rates since
A)people who save more also are more industrious
B)higher income allows for more savings
C)a higher saving rate allows for more investment in human capital which ultimately enhances economic growth
D)having more capital equipment is more important than having better capital equipment
E)none of the above

Question

Quizplus · Accepted Answer

A higher saving rate enables more investment in both physical and human capital. Investing in human capital, such as education and skills training, can significantly enhance a country's economic growth by improving the productivity of its workforce.

Countries with Higher Saving Rates May Have Higher Equilibrium Growth