How can increased investment help a country achieve increased economic growth?
A country that invests substantially in human and physical capital will be able to produce a greater quantity of goods and services in future periods. As a result, the country would experience a higher standard of living. Countries that tend to grow most rapidly are those that devote a larger share of available resources to producing capital goods instead of consumption goods.
You might also like to view...
If demand is price inelastic and the price is lowered, which of the following occurs?
A) The quantity sold decreases. B) The total expenditure increases and the total revenue decreases. C) The total revenue of the firms selling the product is unchanged. D) The total revenue of the firms selling the product decreases. E) The total expenditure decreases and the total revenue increases.
Beginning in 2008, The Federal Reserve and the U.S. Treasury Department responded to the financial crisis by intervening in financial markets in unprecedented ways. Briefly summarize the actions of the Fed and Treasury
What will be an ideal response?
If forecasting errors are rational, then
A) people will always be error-prone. B) they will be random, and thus independent of previous errors. C) they will be independent of business firm production and price forecasts. D) A and C are both correct.
Equilibrium GDP could be upset by a change in
A. Any leakage or injection. B. Leakages only. C. Injections only. D. Investment only.