Does it matter how much a developing country saves? Explain why or why not. Discuss theories and evidence on whether developing countries can increase the net savings rate in the economy through public policy
In particular, consider whether this can be accomplished through increased or decreased taxation of one or more types, and increased or decreased government spending of one or more types.
Requirements for student answers will depend on what you have introduced in lecture.
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Information on the price elasticity of demand is particularly important to managerial decision making because:
A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B) depending on the elasticity coefficient, decision makers will immediately know if a price change will cause profits to increase or decrease. C) it allows one to predict how total revenue will respond, i.e., increase or decrease, to a change in price. D) as the price elasticity coefficient approaches one, profits will increase.
Which of the following are advantages of greater exchange rate flexibility?
a. The alleviation of potential conflicts that arise between the internal balance and the external balance. b. The insulation of the domestic economy from economic shocks. c. An expansion abroad would have contractionary effects on the domestic economy. d. Both a and b e. Both a and c
If the price of bonds rises,
a. the Fed will decrease the money supply b. the Fed will increase the money supply c. the interest rate will rise d. the interest rate will fall e. inflation must be accelerating
Teesha is a producer of leather belts and bags. She has just learned that a new tax is going to be assessed on leather goods. If Teesha understands how taxes influence pricing, what is her most likely reaction?
a. She is upset because she knows she will receive less for her products. b. She is happy because she knows she will receive more for her products. c. She does not care because she knows this will not affect her products. d. She is happy because she will have more producer surplus on her products.