Which of the following statements is true?
A) For positive growth, consumption in an economy should always be less than savings.
B) The greater the savings rate in an economy, the slower is the rate of capital accumulation.
C) The greater the consumption expenditure in an economy, the faster is capital accumulation.
D) Extremely high savings rate can be counterproductive for an economy in short term.
D
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If all inputs are increased by 5 percent and output increases by 8 percent, then the
A) firm experiences constant returns to scale. B) long-run average cost curve slopes downward. C) long-run average cost curve shifts downward. D) firm experiences diseconomies of scale.
The actual value of the price elasticity of demand is always
A) positive because of the law of demand. B) negative because of the law of demand. C) positive because of diminishing marginal utility. D) negative because percentages can only be negative.