Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that
a. all three countries will grow at the same rate.
b. Country A will grow the fastest.
c. Country B will grow the fastest.
d. Country C will grow the fastest.
b
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The market price of a factor of production that is in fixed supply is determined only by demand
Indicate whether the statement is true or false
Refer to the table above. You are told that Country B has no minimum wage or child labor laws. Now the correct answer is
A) country B will export good S. B) country A will export good S. C) both countries will export good S. D) trade will not occur between these two countries. E) both countries will import good S.
When demand is unit elastic, price elasticity of demand equals
a. 1, and total revenue and price move in the same direction. b. 1, and total revenue and price move in opposite directions. c. 1, and total revenue does not change when price changes. d. 0, and total revenue does not change when price changes.
During periods of hyperinflation, money does not hold its value; therefore, people hold as little as possible for as short a time as possible. This description implies that the
A. Transactions demand for money has increased. B. Speculative demand for money has decreased. C. Portfolio demand for money has decreased. D. Precautionary demand for money has increased.