In the Solow growth model, if the level of investment is less than depreciation at the initial capital-labor ratio , then ?k is ________ and the capital-labor ratio ________ toward the steady-state capital-labor ratio
A) greater than zero; increases
B) greater than zero; decreases
C) less than zero; increases
D) less than zero; decreases
D
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If the real exchange rate between the U.S. and Japan is 1, the nominal exchange rate is 100 yen per U.S. dollar and the price of chicken in the U.S. is $2.50 per pound, what is the price of chicken in Japan?
a. 400 yen per pound b. 250 yen per pound c. 100 yen per pound d. 40 yen per pound
Given the strict quantity theory of money, if the quantity of money doubled, prices would:
A. fall by half. B. double. C. remain constant. D. increase somewhat but less than double.
Resources used in the production process
What will be an ideal response?