Other things the same,if a country increased its saving rate,which of the following would that country likely have in 40 years?
A)higher productivity and a higher growth rate of real GDP
B)higher productivity but not a higher growth rate of real GDP
C)the same productivity and growth of real GDP it began with
D)higher productivity growth rate and higher real GDP

Question

Quizplus · Accepted Answer

Increasing the saving rate leads to higher investment in capital, which raises productivity. However, the growth rate of real GDP may not increase in the long run as it tends to stabilize once the economy reaches a new steady state.

Other Things the Same,if a Country Increased Its Saving Rate,which