Higher levels of savings will result in all of following except:
A)greater economic growth.
B)higher capital formation.
C)more consumption in the future.
D)lower rates of investment.

Question

Higher levels of savings will result in all of following except:
A)​greater economic growth.
B)​higher capital formation.
C)​more consumption in the future.
D)​lower rates of investment.

Quizplus · Accepted Answer

Higher levels of savings lead to higher levels of capital accumulation, which leads to a higher rate of investment. Therefore, option D, which states that higher savings will result in lower rates of investment, is incorrect. The other options are correct, as higher levels of savings can result in greater economic growth, higher capital formation, and more consumption in the future.

Higher Levels of Savings Will Result in All of Following