Asked by Mercedes Guevara on Jul 17, 2024
Verified
Which statement is true?
A) Our lower rate of productivity growth has been affected by our low rate of savings.
B) Our lower rate of productivity growth has been caused almost entirely by our high rate of savings.
C) Our high rate of productivity growth has been caused almost entirely by our high rate of savings.
D) Our high rate of productivity growth has been caused almost entirely by our low rate of savings.
Productivity Growth
An increase in the efficiency of production, often measured by the output of goods and services per unit of input over time.
Savings Rate
The percentage of money that individuals or households save from their disposable income.
- Understand the relationship between savings rate and productivity growth.
Verified Answer
SH
Shelton HardyJul 21, 2024
Final Answer :
A
Explanation :
The statement that is true is option A, which states that our lower rate of productivity growth has been affected by our low rate of savings. This is because a lower rate of savings means less investment in research and development, education, and training, which are all essential for increasing productivity growth. Therefore, option A is the correct statement.
Learning Objectives
- Understand the relationship between savings rate and productivity growth.
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