Which of the following statements concerning national saving is true?
A) An increase in the rate of saving will lead to a reduction in consumption and therefore to both a short- run and a long- run decrease in national income.
B) An increase in the rate of saving will cause an immediate increase in national income, but may cause a drop in national income in the long- run.
C) An increase in the rate of saving will always be offset by a reduction in private investment.
D) A country's saving rate is unrelated to its growth rate.
E) An increase in the rate of saving will lead to a short- run reduction in national income, but to higher economic growth in the long run.
Correct Answer:
Verified
Q37: Consider the competing products made by Apple
Q38: According to the Neoclassical growth model, it
Q39: Investment in innovation is often considered to
Q40: In Neoclassical growth theory, an increase in
Q41: In Neoclassical growth theory, increasing the amount
Q43: current increases in investment may only generate
Q44: Consider a closed economy in the long
Q45: In the long run, an increase in
Q46: If per capita GDP in a richer
Q47: According to the "new" theories of economic
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents