Suppose that the U.S.undertakes a policy to increase its saving rate.This policy will likely
A)have no impact on the growth rate of real GDP per person.
B)decrease the growth of real GDP per person for a few years.
C)increase the growth of real GDP per person for several decades.
D)permanently increase the growth rate of real GDP per person.

Question

Quizplus · Accepted Answer

Increasing the saving rate can lead to more investment in capital, which can boost productivity and growth in real GDP per person for several decades, but not permanently.

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