The saving rate has the following characteristic in Solow's exogenous growth model
A) it increases with output.
B) it first decreases, then increases with output.
C) it first increases, then decreases with output.
D) it is constant.
D
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If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will
A. fall by 6%. B. remain constant. C. fall by 12%. D. rise by 6%.
Successful adjustment to external imbalance is likely to involve
a. expenditure-reducing policies b. expenditure-switching policies c. import compression d. devaluation of the national currency e. all of the above
To be valid, an economic model must
a. include every activity that occurs in the real world b. include every economic activity that occurs in the real world c. be useful in explaining cause-and-effect relationships in the real world d. exclude any link to the real world e. not be based on an abstraction of the real world
The quantity theory of money along with the assumption of a constant velocity can explain which of the following?
A. At a given level of money growth, the higher the level of real growth the lower the level of inflation will be. B. At a given level of money growth, the higher the level of real growth the higher the level of inflation will be. C. If real growth equals money growth, the price level is falling. D. If real growth is higher than money growth, the price level must be rising.