Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.

\begin{array} { | l | c | l | l | } \hline \text { Country } & \begin{array} { c } \text { National Saving } \\\text { (\% of GDP) }\end{array} & \begin{array} { l } \text { Growth rate of } \\\text { real GDP per } \\\text { person }\end{array} & \text { Birth Rate } \\\hline \text { Japan } & 28 & 1.6 & 9.96 \\\hline \text { Canada } & 24 & 2.6 & 11.4 \\\hline \text { Germany } & 23 & 1.9 & 9.35 \\\hline \text { U.S. } & 14 & 1.9 & 14.2 \\\hline\end{array}

If the data support the neoclassical growth theory, we would expect to see
A) the United States with the highest economic growth rate because it has the highest birth rate.
B) the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption.
C) Canada with the highest economic growth rate because it has the highest real GDP per person.
D) Japan with the highest economic growth rate because the high saving means that more capital is accumulated.

Neoclassical Growth Theory Proposes That

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge