Assume that an economy experiences both positive population growth and technological progress. A reduction in the saving rate will cause
A) no change in K/NA.
B) a permanent reduction in the rate of growth of output per worker.
C) a permanent reduction in the rate of growth of output.
D) no change in Y/NA.
E) none of the above
E
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The marginal rate of technical substitution of labor for capital (MRTSLK) tends to be higher
a. the larger the quantity of capital already employed. b. the lower the quantity of capital already employed. c. when a firm is choosing baskets that are technologically inefficient. d. in the short-run compared to the long-run.
Which of the following is not counted as a part of GDP?
a. the purchase of 100 shares of AT&T stock by your grandfather b. the purchase of a snow plough by the city of Minneapolis c. the unsold additions to inventory at an appliances store d. the purchase of a loaf of bread by a consumer
Which of the following people purchased the correct asset to meet his or her objective?
a. Michelle wanted to be a part owner of Mamma Rosa's Pizza, so she purchased a bond issued by Mamma Rosa's Pizza. b. Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric. c. Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda. d. All of the above are correct.
Unlike a tariff, a quota does not cause either a production effect or a consumption effect.
Answer the following statement true (T) or false (F)