Other things the same, a country that increases its savings rate will have
a. higher future capital and higher future real GDP per person.
b. higher future capital but not higher future real GDP per person.
c. higher future real GDP per person but not higher future capital.
d. neither higher future capital nor higher future real GDP per person.
a
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A monopsonist hires the amount of labor where the marginal revenue product of labor equals the:
a. price of the monopsonist's product. b. wage rate. c. marginal factor cost of labor. d. marginal product of labor.
Total surplus is
a. equal to consumer surplus minus producer surplus. b. equal to the total value to buyers minus the total cost to sellers. c. equal to consumers' willingness to pay plus producers' cost. d. greater than the sum of consumer surplus plus producer surplus.
Although central banks are responsible for foreign-exchange policy, they have no power to intervene in exchange rate markets.
a. true b. false
According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because
A. an increase in the money supply will have little impact on interest rates. B. an increase in the money supply will raise the amount of government debt. C. an increase in the money supply will only lead to higher interest rates. D. an increase in the money supply will only lead to lower investment spending.