In the Solow model, if total saving exceeds depreciation:
A. capital deepening stops.
B. gross investment is negative.
C. real wages decrease.
D. capital stock increases.
Answer: D
You might also like to view...
Mountain Water is a natural monopoly. The government decides to regulate Mountain Water by imposing a marginal cost pricing rule. The figure above shows the demand for Mountain Water. Marginal cost is $0.20 per bottle
The price of a bottle of Mountain Water is ________, and ________ thousand bottles are sold per month. A) $0.20; 400 B) $0.50; 250 C) $0.20; 500 D) $1.00; 500
The reason externalities distort the allocation of resources is that
a. too few goods are usually produced. b. firms often go out of business because of the externality. c. a firm's private costs do not reflect the social cost of production. d. regulating externalities uses scarce resources.
Which of the following would increase the demand for U.S. dollars in the foreign exchange market?
a. the spending of U.S. tourists in France b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a Canadian buyer d. the purchase of a Mexican shoe factory by a U.S. investor
According to the Application, the cultural changes in England allowed individuals to take advantage of
A) the elimination of trade barriers resulting from the formation of the European Union. B) the decrease in population caused by the number of citizens who were leaving for the New World. C) new developments in science and technology. D) the increase in agrarian lifestyles.