Which factor does NOT directly affect the GDP of a country?

The correct response highlights that household savings do not directly affect the GDP of a country. Gross Domestic Product (GDP) is typically calculated using the expenditure approach, where GDP is the sum of consumption, investment, government spending, and net exports (exports minus imports). Each of these components has a direct impact on GDP.

Consumption, government spending, and investment are all components that contribute directly to GDP calculations. When households save, that money is not being spent, and hence it does not contribute to consumption, which is one of the primary drivers of GDP. While savings can lead to investment in the longer term, the act of saving itself does not directly boost GDP figures in the current period.

Understanding this distinction is key, as it highlights the difference between short-term economic activity (which affects GDP) and longer-term financial behaviors (like saving), which can influence economic growth over time but don't enter the GDP equation directly in the immediate context.