The relationship between the rate of saving and per capita real GDP is
A) positive.
B) negative.
C) constant.
D) not stable.

Question

Quizplus · Accepted Answer

The relationship between the rate of saving and per capita real GDP is positive. As per capita real GDP increases, individuals tend to save more due to a higher disposable income. Thus, a higher rate of saving leads to an increase in per capita real GDP.

The Relationship Between the Rate of Saving and Per Capita