If a country's saving rate increases,which of the following happens in the long run?
A)Income decreases faster.
B)Productivity increases faster.
C)Productivity decreases.
D)Income increases.

Question

Quizplus · Accepted Answer

If a country's saving rate increases, it means that people are saving more and consuming less. This can provide more funds for investment, which in turn can lead to increased productivity and economic growth in the long run. As productivity increases, incomes are likely to go up as well. Thus, the correct answer is D) Income increases.

If a Country's Saving Rate Increases,which of the Following Happens