Which of the following would cause the national saving rate to increase for any given interest rate?
A)An increase in the consumption share of GDP
B)A decline in the investment share of GDP
C)A decline in the net export share of GDP
D)A decline in the government share of GDP
E)An increase in the net export share of GDP

Question

Quizplus · Accepted Answer

A decline in the government share of GDP would cause the national saving rate to increase because the government would be spending less and therefore not contributing as much to overall consumption, leaving more money available for individuals and businesses to save.

Which of the Following Would Cause the National Saving Rate