International evidence on the relationship of per capita income and the saving rate suggests that ________.
A)a high level of income per person requires a high saving rate
B)a high saving rate guarantees a high level of income per person
C)a high saving rate might result in a high level of income per person
D)a high saving rate requires a high level of income per person

Question

Quizplus · Accepted Answer

While there is a positive correlation between per capita income and the saving rate, it is not necessarily a guarantee. A high saving rate might result in a high level of income per person, but other factors such as government policies, access to credit, and cultural attitudes towards savings can also influence the relationship between income and saving rates. Therefore, option C is the most appropriate answer.

International Evidence on the Relationship of Per Capita Income and the Saving