Which of the following statements concerning saving is true?
A) A country's saving rate is unrelated to its growth rate.
B) A country's growth rate is unrelated to its national income.
C) An increase in the rate of saving will lead to a reduction in consumption in the short run and in the long run.
D) An increase in the rate of saving decreases gross domestic income by reducing current consumption but increases current and future gross domestic income through investment in capital goods.
Correct Answer:
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