When comparing across countries, the higher the rate of saving
A) the lower the level of per capita real Gross Domestic Product (GDP).
B) the higher the level of per capita real Gross Domestic Product (GDP).
C) the less industrialized the country.
D) the lower the productivity rates.

Question

Quizplus · Accepted Answer

The higher the rate of saving, the higher the level of per capita real Gross Domestic Product (GDP). This is because saving leads to more investment in capital goods, which increases productivity and therefore GDP.

When Comparing Across Countries, the Higher the Rate of Saving