Suppose k = y1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, investment per worker is ________
A) $0.80
B) $1.60
C) $3.20
D) $6.40
B
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The term "open market operations" refers to the:
a. loan-making activities of commercial banks. b. effect of expansionary monetary policy on interest rates. c. operation of competitive markets in the banking industry as the result of deregulation. d. buying and selling of government securities by the Federal Reserve.
According to the Case in Point on economic growth, which pattern describes the historical record on growth?
A) growth has been strong throughout history B) growth was robust before the Industrial Revolution C) growth was very strong between 1870 and 1970 D) none of the above
Government's role of taxing some citizens and transferring income to others is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) maintaining the money supply.
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.
A. a decrease; no change B. an increase; an increase C. no change; a decrease D. a decrease; a decrease