According to studies using international data,an increase in the saving rate
A)does not increase the growth rate of output.
B)increases the growth rate of output for a few years.
C)increases the growth rate of output for about a decade.
D)increases the growth rate of output for several decades.

Question

Quizplus · Accepted Answer

According to international data, an increase in the saving rate results in an increase in the growth rate of output for several decades. This is likely due to the fact that increased saving leads to increased investment, which boosts productivity and eventually increases economic growth.

According to Studies Using International Data,an Increase in the Saving