In recent years,Taiwan has experienced increases in savings and investment.As a result of the higher investment and saving,we expect
I.increases in physical capital.
Ii.increases in the inflation rate.
Iii.advances in technology.

Question

Quizplus · Accepted Answer

Increased savings and investment usually lead to more funds being available for investment in physical capital. This will result in an increase in the stock of physical capital in Taiwan. In addition, advances in technology are often a result of increased investment and can contribute to improved productivity, which can also contribute to economic growth. However, an increase in savings and investment does not necessarily lead to an increase in the inflation rate. In fact, if the increase in investment leads to improvements in productivity, it may lead to a decrease in the inflation rate.

In Recent Years,Taiwan Has Experienced Increases in Savings and Investment