When a country saves a larger portion of its GDP, will it have more or less investment?
A) It will have less investment, and so it will have more capital and higher productivity.
B) It will have less investment, and so it will have less capital and higher productivity.
C) It will have more investment, and so it will have more capital and higher productivity.
D) It will have more investment, and so it will have less capital and higher productivity.

Question

Quizplus · Accepted Answer

When a country saves a larger portion of its GDP, it means that there is more money available for investment. This increased investment leads to more capital, which in turn leads to higher productivity. Therefore, the country will have more investment, more capital, and higher productivity.

When a Country Saves a Larger Portion of Its GDP