Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2,
A) depreciation becomes greater than investment.
B) investment becomes greater than depreciation.
C) investment becomes greater than saving.
D) saving becomes greater than investment.
B
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A negative slope
A) represents an inverse relationship, such as beers consumed and test score. B) represents a direct relationship, such as snow fall and car accidents. C) indicates that there is no relationship between two variables, such as women's wages and likelihood of sunshine. D) means that the line crosses below the x-axis.
Not all sellers benefit from a binding price floor
a. True b. False Indicate whether the statement is true or false
The alternative combinations of goods and services that can be produced in a given time period with the available resources and technology is the:
A. Production possibilities. B. Consumption possibilities. C. International trade balance. D. Comparative advantage.
Inflation will
A) increase aggregate demand. B) increase the quantity of real GDP demanded. C) decrease aggregate demand. D) decrease the quantity of real GDP demanded.