Which of the following is most likely to reduce the rate of economic growth?
A. slow technological progress
B. investment in human capital
C. a high domestic saving rate
D. subsidies for R&D activities
Answer: A
You might also like to view...
If U.S. inflation is 2%, Japanese inflation is 1%, and Mexican inflation is 3%, which of the following is true according to the theory of purchasing power parity?
A) The dollar should rise by 1% versus the yen and fall by 1% versus the peso. B) The dollar should rise by 1% versus the peso and fall by 1% versus the yen. C) The dollar should rise by 1% versus both the peso and the yen. D) The dollar should fall by 1% versus both the peso and the yen.
The demand function for tickets to Ireland is expressed as Qd = 1600 - 0
005P + 2 PEngland + 3rain + 2Y, where P is the price for tickets to Ireland, PEngland is the price of tickets to England, rain is the inches of rain Ireland receives annually, and Y is annual household income. Assuming PEngland is $1000, rain is 30 inches per year, and income is 40,000, how much would the price of tickets to Ireland have to fall for consumers to be willing to buy one more trip per year? A) $15 B) $20 C) $50 D) $200
The opportunity cost of capital for a consumer's investment decision depends on their financial situation. Which rate should the consumer use?
A) The interest rate on investment opportunities if the consumer is a net saver. B) The interest rate paid on debts if the consumer is a net debtor. C) A and B are correct D) The same interest rate that local firms use to analyze their investment opportunities.
If the Fed sells securities on the open market, this will
a. decrease banks’ excess reserves. b. increase banks’ excess reserves. c. leave banks’ excess reserves unchanged. d. lower the reserve requirement.