In the long run,a higher saving rate
A)cannot increase the capital stock.
B)means that people must consume less in the future.
C)increases the level of productivity.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

In the long run, a higher saving rate can lead to an increase in the capital stock, which in turn can increase the level of productivity as more capital per worker is available, enhancing output.

In the Long Run,a Higher Saving Rate