If there were a permanent increase in technology, A, we would expect real saving to:
A)increase as the increase in real consumption is less than real GDP.
B)increase as the increase in real consumption is more than real GDP.
C)decrease as the increase in real consumption is more than real GDP.
D)decrease as the increase in real consumption is less than real GDP.

Question

Quizplus · Accepted Answer

A permanent increase in technology would boost productivity and real GDP, leading to higher income. This typically results in increased saving as the rise in real consumption tends to be less than the increase in real GDP, allowing for more resources to be saved.

If There Were a Permanent Increase in Technology, A, We