It is likely that a small increase in a country's saving rate will have
A. a large effect on per capita real GDP immediately because the increase in saving leads to a much larger rate of economic growth.
B. a small effect on per capita real GDP many years later because the increase in saving will have very little effect on the growth rate.
C. a large effect on per capita real GDP many years later because the increase in saving leads to a slightly higher rate of economic growth which has large effects over time.
D. a small effect on per capita real GDP many years later because the increase in saving will be offset in later years by a decrease in the saving rate.
Answer: C
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The price of a cowboy hat is $100. Willie is willing to pay $130, Waylon is willing to pay $100, and Merle is willing to pay $85. All of the following statements are true EXCEPT:
A) Merle's consumer surplus is $15. B) The sum of consumer surplus will be $30. C) Waylon's consumer surplus is $0. D) Only Willie and Waylon will purchase the cowboy hat. E) Willie's consumer surplus is $30.
In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that
(a) natural monopolies were subject to government regulation. (b) business in interstate commerce was subject to regulation. (c) any business, whether or not a natural monopoly, or whether or not it was in interstate commerce, may under certain circumstances be subject to regulation. (d) only businesses chartered (licensed) by governments could be subjected to government regulation.
The planned investment function will shift downward if
A) real disposable income increases. B) the interest rate falls. C) business expectations become more pessimistic. D) the existing stock of capital decreases.
A measure that can change from observation to observation is known as a(n)
A. empirical measure. B. variable. C. causality. D. model.