Regarding the role of saving in economic growth, studies indicate that
A) there is both a positive and a negative relationship between economic growth and saving.
B) there is a positive relationship between economic growth and saving.
C) there is a negative relationship between economic growth and saving.
D) there is no relationship between economic growth and saving.
B
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If a $100 billion increase in government spending results in a $500 billion increase in real GDP, then the value of the multiplier:
A. equals 0.2. B. equals 5. C. equals $400 billion. D. cannot be determined.
Monetarists suggest doing which of the following?
A. Use fiscal policy to combat inflation in the long run. B. Use monetary policy to combat unemployment in the long run. C. Maintain a steady growth rate of the money supply. D. Use fiscal policy to combat unemployment in the short run.
Which of the following statements correctly identifies a similarity between monopoly and perfect competition?
A) Entry is restricted in both market structures. B) Price equals marginal cost in both market structures. C) Production is expanded until marginal revenue equals marginal cost in both the market structures. D) Firms face an upward sloping demand curve and a downward sloping marginal revenue curve in both the market structures.
Show the effects of a change in the nominal interest rate and a change in real GDP using the demand for money curve
What will be an ideal response?