A higher rate of saving at the national level will,in the long-run ________.
A)cause a decrease in levels of capital and output
B)have no effect on levels of capital and output
C)lead to an increase in population growth
D)cause an increase in levels of capital and output

Question

Quizplus · Accepted Answer

A higher rate of saving at the national level means that there will be more funds available for investment. This will lead to an increase in the level of capital in the economy, which in turn will allow for greater output in the long-run as businesses become more productive. Therefore, the correct answer is D - a higher rate of saving at the national level will cause an increase in levels of capital and output.

A Higher Rate of Saving at the National Level Will,in