A reduction in the saving rate will not affect which of the following variables in the long run?
A) output per worker
B) the growth rate of output per worker
C) the amount of capital in the economy
D) capital per worker
E) none of the above
B
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The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and trade is possible, which of the following points are possible equilibria?
A) a and b B) a and c C) b and d D) c and d
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____
a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin
When changes in the supply of money are implemented, it makes interest rates change in the _____ direction as the shift in the money supply curve and makes aggregate demand change in the _____ direction as the shift in the money supply curve. a. Same; same
b. Same; opposite. c. opposite; same. d. Opposite; opposite.
Most power in the Federal Reserve System is held by the
A. president and Congress. B. Secretary of the Treasury, who appoints the members of the Board of Governors. C. Board of Governors of the system. D. member banks of the system.