Question

Countries that have high rates of savings also have

		low rates of growth.
		stock market bubbles.
		low rates of investment.
		high rates of investment.

Answer 1

countries that have high rate of savings also have high rates of investment. savings and investment act in a cyclical process. a country can save more if its disposable income is more and in that case a countrys investment and employment opportunities has to be more so we can say high investment leads to more income and more savings and that savings gets invested in the next period and generates more income. so a country which saves more must be investing more.