Although it may be difficult to draw causal relationships, still statistical evidence shows that, over time,
a. there is no relationship between levels of saving and economic growth
b. there is an inverse relationship between levels of saving and economic growth
c. higher levels of saving are associated with lower levels of economic growth
d. lower levels of saving are associated with lower levels of economic growth
e. lower levels of saving are associated with higher levels of economic growth
D
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If the exchange rate between the U.S. dollar and the Mexican peso (pesos per dollar) is less than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the dollar is overvalued as traders take advantage of arbitrage opportunities. B) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of arbitrage opportunities. C) There are opportunities for profit by purchasing goods in the United States and then selling them in Mexico. D) There are no arbitrage opportunities for which traders can take advantage.
If the consumer price index (CPI) is 220 one year and 210 the next, the annual rate of inflation as measured by the CPI is approximately _____
a. ?2.3 percent b. ?4.6 percent c. 10 percent d. 4.8 percent e. 220 percent
With an MPS of .2, the MPC will be:
a. .8 b. .3 c. 1.2 d. 5
If a monopolist's price is $50 per unit and its marginal cost is $25, then
A) to maximize profit the firm should increase output. B) to maximize profit the firm should decrease output. C) to maximize profit the firm should continue to produce the output it is producing. D) Not enough information is given to say what the firm should do to maximize profit.