Suppose there is a reduction in the saving rate. This decrease in the saving rate will cause a reduction in which of the following once the economy reaches its new steady state equilibrium?
A) growth rate of output
B) growth rate of capital
C) growth rate of capital per worker
D) all of the above
E) none of the above
E
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Although Africa's debt/GNP ratio is larger than Latin America's, the debt-service burden is lighter. Explain this and relate it to changes in the nature of development lending in the 1970s
What will be an ideal response?
Everything else held constant, an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Assume the market demand for wheat may be written as Q = 45 - 2p + 0.3Y + 1pb where Y refers to income and pb refers to the price of barley. Assuming that wheat and barley both sell for $1, and income is $20, calculate the price elasticity, cross price elasticity and income elasticity for wheat
What will be an ideal response?
Labor productivity is
A) the quantity of output produced in one hour by several workers. B) the quantity of capital one worker can produce in one day. C) the quantity of output produced by one worker or by one hour of work. D) the quantity of output produced in one hour by one machine.