Refer to the information. In equilibrium saving will be:
Answer the question on the basis of the following information for a private closed economy, where I g is gross investment, S is saving, and Y is gross domestic product (GDP).
A. $40.
B. $120.
C. $60.
D. $80.
D. $80.
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Higher saving rates mean higher future growth rates because
A) the banks have more money to distribute to their shareholders. B) saving contributes to more investment, which yields a larger capital stock. C) the interest earned from savings gives you more wealth. D) saving contributes to less investment, which yields a larger capital stock.
Rationing goods on the basis of price is a direct result of
A) scarcity. B) queuing. C) government intervention. D) the profit motive.
Jason has been holding his retirement savings in a safe in his house. Currently the economy is experiencing a falling price level. He can conclude that: a. the real purchasing power of his money is remaining constant
b. the real value of his savings is increasing as long as the price level is falling. c. the real value of his savings is decreasing as long as the price level is falling. d. none of the above are true.
Long-run economic growth can occur as the result of
A. A technological advance. B. A rightward shift in aggregate demand. C. The employment of more of the available resources. D. An increase in the price level.