Savings as big investment, The Economic growth in a proficient economy will tend to

Savings as big investment

The Economic growth in a proficient economy will tend to increase when: (1) Capital quickly depreciates and becomes obsolete. (2) Threats of war divert resources to the national defense. (3) People’s savings increase to permit bigger investment. (4) Funds for research and development are decreased. (5) The law of diminishing returns is completely operative.

Choose the right answer from the above options.

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