Suppose a poor economy inches towards the steady state in Solow's exogenous growth model. What happens?
A) Consumption per capita decreases.
B) Saving per capita decreases.
C) The depreciation rate increases.
D) The growth rate of output decreases.
D
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Fiscal policy is most effective when exchange rates are fixed
Indicate whether the statement is true or false
An increase in the interest rate, other things constant, will: a. shift the supply of loanable funds curve to the left. b. shift the supply of loanable funds curve to the right. c. increase the quantity of loanable funds supplied
d. shift the demand for loanable funds curve to the left. e. increase the quantity of loanable funds demanded.
Fixed costs exist only in:
A. labor-intensive markets. B. the long run. C. the short run. D. capital-intensive markets.
Table 5.2National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$2,850Exports$300Government purchases of goods and services$810Social Security taxes$295Net investment$510Indirect business taxes$445Imports$450Gross investment$700Corporate income taxes$190Personal income taxes$875Corporate retained earnings$210Net foreign factor income$0Government transfer payments to households$780Net interest payments to households$20On the basis of Table 5.2, disposable income is
A. $2,805 billion. B. $4,480 billion. C. $3,680 billion. D. $3,490 billion.