Suppose the following situation exists for an economy: Kt+1/N = Kt/N. Given this information, we know with certainty that
A) the economy is operating at the golden rule equilibrium in period t.
B) saving per worker is less than depreciation per worker in period t.
C) saving per worker is greater than depreciation per worker in period t.
D) investment per worker equals depreciation per worker in period t.
D
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All human wants cannot be satisfied because of the problem of scarcity
a. True b. False Indicate whether the statement is true or false
The amount of a good that is given up to produce another good is:
a. its dollar cost. b. its opportunity cost. c. its relative cost. d. its absolute cost. e. all of these.
When attorneys, accountants and other professionals wear expensive clothing, it:
A. does not serve as a credible signal of ability because anyone can wear nice clothes. B. can serve as a credible signal of ability. C. is a waste of money because professionals do not need to signal their ability. D. only serves as a useful signal of ability if they already have well-established reputations.
The voting members of the Federal Open Market Committee are:
A. all of the members of the Board of Governors and all of the presidents of the 12 Federal Reserve banks. B. all of the members of the Board of Governors and five of the presidents of the 12 Federal Reserve banks. C. the presidents of the 12 Federal Reserve banks and three members of the Board of Governors. D. only the members of the Board of Governors.