In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output.
B) raises the growth rate in aggregate output.
C) must reduce per capita consumption.
D) must reduce the standard of living.
A
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Why do consumers benefit from pay-as-you-go social security?
A) It keeps inflation in check as money is redistributed. B) It is a better way than taxes to finance the government. C) It forces people to save more than they would otherwise. D) With sufficiently high population growth, many young contribute to the benefits of the old.
According to William Niskanen, bureaucrats seek to
a. maximize profits b. maximize tax revenues c. maximize budgets d. minimize variable costs e. minimize total costs
Most disagreements among economists stem from normative issues
a. True b. False Indicate whether the statement is true or false
According to the IGM poll, most economists think that the benefits of ARRA exceeded the costs
a. True b. False Indicate whether the statement is true or false