Countries that have higher saving rates are likely to have
A)A higher investment rate as a percentage of GDP and a lower growth rate of real GDP.
B)A higher investment rate as a percentage of GDP and a higher growth rate of real GDP.
C)A lower investment rate as a percentage of GDP and a lower growth rate of real GDP.

Question

Quizplus · Accepted Answer

Countries with higher saving rates are able to invest more, which leads to a higher investment rate as a percentage of GDP. This increased investment can lead to a higher economic growth rate due to more resources being available for business expansion, innovation and development.

Countries That Have Higher Saving Rates Are Likely to Have