The data on U.S. growth rates during the last half of the 20th century suggest that when the saving rate increases,
a. the rate of growth can increase or decrease depending on the phase of the businesscycle the economy is in
b. the rate of economic growth increases
c. the rate of economic growth decreases
d. the rate of economic growth is unaffected
e. countercyclical fiscal policy is neutralized
B
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Which of the following statements identifies a difference between correlation and causation?
A) Correlation occurs when one thing directly affects another, whereas causation implies a mutual relationship between two things. B) Causation cannot arise when correlation is present, and correlation cannot arise when causation is present. C) Correlation implies a mutual relationship between two things, whereas causation occurs when one thing directly affects another. D) A causal relationship exists between two variables when they are correlated, but correlation does not necessarily exist if there's a causal relationship between two variables.
Buying a house during a recession may be a good idea if your job is secure because the Federal Reserve often
A) raises interest rates during recessions. B) lowers interest rates during recessions. C) sells Treasury bills to help the housing market. D) lowers income taxes during recessions.
In 2000, many economists believed that the most serious macroeconomic problem confronting the U.S. economy was an inflationary gap. Which policies would be effective in dealing with this problem?
A. Increase transfer payments. B. Increase government purchases. C. Decrease personal income taxes. D. Increase personal income taxes.
The income per person in the quartile of countries with the most economic freedom was approximately ____ times the figure for the least free group of countries
a. 2 b. 4 c. 5 d. 8