Question

Suppose Americans decide to save less of their incomes, reducing the ability of banks to lend to businesses. With less funds available to businesses, workers will haveless capital equipment with which to work. This leads toslower growth in productivity.True or False.

Answer 1

TRUE

Step-by-step explanation:

The correct answer is TRUE.

When a business has less fund and they have less capital equipment to work on then this will lead to slow the growth of the company.

For a company to grow faster there is a need for more capital more worker and more production.

If Americans decide to save less than this will lead reduce the ability of the bank to lend them less for their businesses.