Other things being equal, a country with a high national saving rate may have a long- run growth rate because more saving increases the .
A)high; availability of funds, thus lowering the interest rate
B)high; wealth of people and increases future consumption
C)low; unemployment and decreases wages in the long run
D)high; interest rate and encourages more investment
E)low; consumption in the long run

Question

Quizplus · Accepted Answer

A high national saving rate increases the availability of funds for investment, which can lower interest rates and promote economic growth by encouraging more investment in productive activities.

Other Things Being Equal, a Country with a High National