The rate of economic growth will be faster if
A) the rate of growth of the money supply is higher.
B) the rate of saving is higher.
C) the rate of growth of the population is higher.
D) consumption spending is greater.

Question

Quizplus · Accepted Answer

The rate of saving is a key determinant of economic growth, as it enables investment in capital goods and infrastructure that can improve productivity and efficiency. Higher rates of saving lead to greater investment and therefore faster economic growth. The other choices may have some effect on economic growth, but they are not as strong or direct as the rate of saving.

The Rate of Economic Growth Will Be Faster If