It is likely that a small increase in a country’s saving rate will hav

It is likely that a small increase in a country’s saving rate will have

A) a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth.
B) a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.
C) a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate.
D) a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time.

ANSWER

D