When a country saves a larger portion of its GDP than it did before,it will have
A)more capital and higher productivity.
B)more capital and lower productivity.
C)less capital and higher productivity.
D)less capital and lower productivity.

Question

Quizplus · Accepted Answer

When a country saves a larger portion of its GDP, it will have more capital available for investment. This will lead to an increase in productivity as more capital can be used to finance projects that will increase productivity, such as improving infrastructure, education, and technology. Therefore, choice A is the best answer.

When a Country Saves a Larger Portion of Its GDP