Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Higher Savings in a economy would most likely result in.

• A. Low Captal Formation
• B. Low Consumption
• C. High Investments

Answer 1

The correct option is C High Investments

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Savings are the backbone of investment, viz., higher savings lead to higher investment and higher growth in an economy, given a conducive macroeconomic environment and the existence of a developed financial system.