In equilibrium, rate of growth of capital in a simple closed economy (i.e., x = 0 ) is determined primarily by
A) the growth rate of savings.
B) the level of saving less expenditures for replacement capital.
C) per capita well-being.
D) the growth rate of replacement capital.
B
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Changes in the money supply growth rate
A) are neutral in the short run. B) need not be neutral in the short run. C) are neutral in the long run. D) need not be neutral in the long run. E) affect the real output of the economy.
Which of the following is a store of value?
a. currency b. U.S. government bonds c. fine art d. All of the above are correct.
Suppose that a bank initially has a leverage ratio of 8 to 1. If this bank increases its capital by $1 million and its assets by $10 million, then the bank's:
A. leverage and risk increases. B. risk increases and its leverage decreases. C. leverage decreases and its liabilities increase. D. liabilities decrease and its leverage increases.
The short-run aggregate supply curve
A) is vertical. B) shows the impact changes in the price level have on the quantity of real GDP when resource prices are constant. C) illustrates the level of potential real GDP. D) shifts whenever the price level changes.