Refer to Figure 17-9. Fed Chairman Paul Volcker's response to the ________ of the late 1970s is depicted in the figure above as a movement from C to D to A

A higher saving rate leads to faster growth because

A) more saving produces greater additions to capital per hour of labor, raising real GDP per person. B) capital would wear out faster. C) people could consume more of an economy's output. D) population growth would accelerate.

The level of saving in Japan has historically been high relative to the level of domestic investment. Based on this information, we would expect that

A) Japan's private saving is greater than its public saving. B) Japan's capital inflows are positive. C) Japan's net foreign investment has been relatively low. D) Japan's net exports have been relatively high.