Other things held constant, higher saving rates lead to
A) a lower standard of living.
B) increases in the number of hours workers work.
C) decreases in real per capita GDP.
D) higher living standards.

Question

Quizplus · Accepted Answer

Higher saving rates lead to increased investment, which in turn leads to higher economic growth and productivity. This ultimately results in higher living standards.

Other Things Held Constant, Higher Saving Rates Lead to