Which of the following is more nearly consistent with a global savings glut?

Question

Quizplus · Accepted Answer

The global savings glut suggests that there is an excess of savings over investment opportunities worldwide, leading to low interest rates. This is consistent with the choice of low interest rates option. Additionally, a high global savings-World GDP ratio implies that there is an excess of savings relative to the size of the global economy, which is also consistent with the choice of low interest rates and high global savings-World GDP ratio. Therefore, option D (low interest rates and high global savings-World GDP ratio) is more consistent with a global savings glut.

Which of the Following Is More Nearly Consistent with a Global