To what phenomenon does "Solow's Paradox" refer?
A) the failure of the Solow growth model to incorporate endogenous growth variables
B) the absence of any measured effect of new computer technology on productivity statistics.
C) the absence of any long term effect of saving on economic growth rates in the Solow growth model
D) the failure of the Solow growth model to predict non-convergence of poor countries
B
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The entry of China and other developing countries into the global economy ________ the value of marginal product of factory workers in the United States and ________ their wage rate
A) increases; lowers B) decreases; raises C) decreases; lowers D) increases; raises
Funds are channeled from savers to borrowers directly through ________ and indirectly through ________
A) financial markets; financial intermediaries B) financial intermediaries; financial markets C) main banks; branches D) brokers;' agents
Which organization officially tracks all business cycles in the U.S. economy?
a. Department of Commerce b. National Bureau of Economic Research c. Bureau of Economic Analysis d. Census Bureau
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remains the same. c. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions become more positive (or less negative). d. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). e. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same.