In recent years, Taiwan has experienced increases in savings and investment. As a result of the higher investment and saving, we expect
i.increases in physical capital.
ii)increases in the inflation rate.
iii)advances in technology.

Question

In recent years, Taiwan has experienced increases in savings and investment. As a result of the higher investment and saving, we expect
i.increases in physical capital. 
ii)increases in the inflation rate.
 iii)advances in technology.

Quizplus · Accepted Answer

Increases in savings and investment typically lead to increases in physical capital as more resources are allocated to building and improving infrastructure and equipment. Additionally, higher investment can drive advances in technology as businesses invest in research and development. However, these factors do not necessarily lead to increases in the inflation rate.

In Recent Years, Taiwan Has Experienced Increases in Savings and Investment