For a country in the process of development, a high saving rate is generally
A. helpful, because it makes resources available for investment.
B. helpful, because it causes a rapid growth of aggregate demand and thus makes it easier to capture economies of scale.
C. harmful, because it causes a stagnation of aggregate demand.
D. harmful, because it promotes imports of consumer goods.
A. helpful, because it makes resources available for investment.
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Willie's wage increased, and he responded by enjoying more hours of leisure per day. Is Willie's behavior consistent with an upward-sloping labor-supply curve?
Given the dominant strategy of MiiTunes according to the figure, we can predict that The Rock Shop:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. will enter and enjoy profits of $4 million.
B. will enter and lose $2 million.
C. will not enter and earn $0.
D. Their actions cannot be predicted because they do not have a dominant strategy.
The Consumer Price Index for one year compares the
a. prices of all goods and services in the economy in that year compared to the prices of those goods and services in a base year b. prices of consumer goods and services that a household purchases in that year to the prices of those goods and services purchased in a base year c. prices of producer goods and services that are made for consumers in that year to the prices of those goods and services in a base year d. prices of goods and services that are purchased by producers in that year to the prices of those goods and services in a base year e. prices of goods and services that are purchased by consumer manufacturers in that year to the prices of those goods and services in a base year
The major source of investment finance in the European model is
a. The stock market b. Foreign investment c. Reinvested profits d. Bank loans e. All of the above