Studies indicate that a. there is no relationship between economic growth and saving. b. there is a negative relationship between economic growth and saving. c. there is a positive relationship between economic growth and saving. d. saving does not contribute to capital formation.

Studies indicate that

a. there is no relationship between economic growth and saving.

b. there is a negative relationship between economic growth and saving.

c. there is a positive relationship between economic growth and saving.

d. saving does not contribute to capital formation.

 

answer:
c. there is a positive relation between economic growth and saving as with economic growth there is an increase in level of income and hence an increase in consumption and saving levels.

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