Economics 9708 · AS & A Level · Trade unions

Trade unions — practice question

What is the most likely explanation for why an increase in a country’s savings ratio may raise its long-term rate of development?

  • AIt would encourage a shift of resources from the secondary to the primary sector.
  • BIt would free resources for the production of capital goods.
  • CIt would increase the level of international trade.
  • DIt would increase the rate of interest.

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