If prices are fixed, an increase in investment results in an increase in equilibrium GDP thatis greater than the change in investment
What will be an ideal response?
is greater than the change in investment.
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Lack of investment in strong education and health care systems
A) causes a deterioration in human capital and a decline in labor productivity. B) causes a deterioration in human capital and an increase in physical capital. C) causes a decline in physical capital and a decline in labor productivity. D) increases human capital and cause a decline in labor productivity.
Based on Table 9.2, the current account balance is
A) -2 percent of GNP. B) +2 percent of GNP. C) +4 percent of GNP. D) -4 percent of GNP. E) None of the above.
How would you define a currency board?
A) the process by which non-pegged interest rates are allowed to fluctuate B) the stockpiling of international reserves by developing countries C) using the dollar to carry out all domestic transactions, making the domestic currency a currency in name alone D) a constraint placed on monetary policy E) The monetary bases is backed entirely by foreign currency and the central bank holds no domestic assets.
About 1 out of every _____ black Americans is poor.
A. 12 B. 7 C. 4 D. 2