If a country's saving rate declined,then other things the same,in the long run the country would have
A)lower productivity,but not lower real GDP per person.
B)lower productivity and lower real GDP per person.
C)lower real GDP per person,but not lower productivity
D)neither lower productivity nor lower real GDP per person.

Question

Quizplus · Accepted Answer

A decline in saving rate can lead to a decrease in investment which in turn can lead to a decline in productivity. This decline in productivity can result in a decrease in real GDP per person in the long run. Therefore, the best choice is B - lower productivity and lower real GDP per person.

If a Country's Saving Rate Declined,then Other Things the Same,in