Which one of the following is true?
A) Saving deters economic growth, because it takes money out of circulation.
B) Saving enables economic growth by providing for investment in the capital stock.
C) International comparisons have found no relationship between the rate of saving and the level of per capita real GDP.
D) Economies with sophisticated credit markets, such as the United States, have no need for saving.

Question

Quizplus · Accepted Answer

Saving enables economic growth by providing for investment in the capital stock. When individuals or businesses save money, those savings can be used to invest in new projects, purchase equipment, or expand operations. This leads to job creation, increased productivity, and ultimately economic growth.

Which One of the Following Is True