Asked by Diana Olvera on Jun 05, 2024
Verified
Two countries with the same saving rates must have the same growth rate of real GDP per person.
Saving Rates
The proportion of disposable income that is saved by households rather than spent on goods and services.
Real GDP
The total market value of all final goods and services produced in a country in a given year, adjusted for inflation.
- Comprehend the impact of savings and investment rates on economic growth.
Verified Answer
AJ
Angie JimenezJun 10, 2024
Final Answer :
False
Explanation :
The growth rate of real GDP per person can be influenced by many factors besides the saving rate, such as technology, human capital, government policies, and more. Two countries with the same saving rate can have different growth rates due to these other factors.
Learning Objectives
- Comprehend the impact of savings and investment rates on economic growth.
Related questions
If a Rich Country Reduced Subsidies to Domestic Producers of ...
The Extremely Low Savings Rate in the United States Has ...
If Gross Investment Is Greater Than Depreciation,then Net Investment Is ...
A Low Rate of Investment Could Be Explained by a ...
Statement I: Our Rate of Productivity Growth Has Been Negative ...