How is household savings related to overall economic growth? Give your answer in the context of the passage.
(A) Overall economic growth is directly related to household savings.
(B) Overall economic growth is inversely proportional to household savings.
(C) There is no specific relationship between overall economic growth and household savings.

Only (C)

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Only (B)

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Only (A)

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Either (A) or (B)

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Either (A) or (C)

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Solution

The correct option is A Only (C)
In the second paragraph it is said that, 'Without any growth in the savings rate, it is futile to think of any spurt in investment and, consequently, in the overall economic growth.' Therefore, option (a) overall economic growth is directly related to household savings is correct.

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