In the long run,a higher saving rate
A)cannot increase the capital stock.
B)increases the growth rate of income.
C)increases the growth rate of productivity.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

In the long run, a higher saving rate does not increase the growth rate of income or productivity; it only affects the level of capital stock and income, not their growth rates.

In the Long Run,a Higher Saving Rate