The short-run effects of an increase in the saving rate include
A)a higher level of productivity.
B)a higher growth rate of productivity.
C)a higher growth rate of income.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An increase in the saving rate means that more resources are available for investment, which can lead to higher productivity and a higher growth rate of income.

The Short-Run Effects of an Increase in the Saving Rate