If the saving rate increases, a country's growth rate of real GDP per hour of labour ________ and capital per hour of labour ________.

Name: If the saving rate increases, a country's growth rate of real GDP per hour of labour ________ and capital per hour of labour ________.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

An increase in the saving rate leads to more investment in capital, which increases capital per hour of labour and subsequently boosts the growth rate of real GDP per hour of labour.

If the Saving Rate Increases, a Country's Growth Rate of Real