If a country increases its saving rate,which of the following permanently grow at a higher rate?
A)productivity and real GDP per person
B)productivity but not real GDP per person
C)real GDP per person but not productivity
D)neither real GDP per person nor productivity

Question

Quizplus · Accepted Answer

An increase in the saving rate can lead to higher levels of capital accumulation, which can temporarily boost productivity and real GDP per person. However, in the long run, the growth rates of productivity and real GDP per person are determined by factors like technological progress, not the saving rate.

If a Country Increases Its Saving Rate,which of the Following