An increase in the saving rate will affect which of the following variables in the long run?
A)output per worker
B)capital per worker
C)the level of investment
D) all of the above

Question

Quizplus · Accepted Answer

An increase in the saving rate leads to an increase in the level of investment. This, in turn, leads to an increase in the capital per worker, which leads to an increase in output per worker in the long run. Therefore, all the variables mentioned in the options (A, B, and C) will be affected in the long run.

An Increase in the Saving Rate Will Affect Which of the Following