why high rate of savings boost the economy?
Muller knows that government policies can have a significant impact on economic growth. Which of the following policies is least likely to foster a productivity speedup?
A) Pass laws that encourage higher rates of savings. B) Restrict international trade. C) Foster technological advancement.
Your answer: B was correct!
Technological advancement and higher rates of savings are important factors that tend to promote economic growth. (Study Session 4, LOS 14.b)