In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state.
b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state.
c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state.
d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
A
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A change that increases the real money supply relative to real money demand causes
A. the LM curve to shift up and to the left. B. the IS curve to shift down and to the left. C. the LM curve to shift down and to the right. D. the IS curve to shift up and to the right.
The external costs associated with gambling include
A. the crowd control problems at casinos. B. the effects on the gamblers' family. C. the cost of security at casinos. D. the losses to gamblers.
What is the amount of money a person has left of his or her income after taxes called?
(A) Disposable personal income (B) National income (C) Personal income (D) Aggregate income
Sue sells a futures contract for U.S. Treasury bonds and on the settlement date the interest rate on U.S. Treasury bonds is lower than Sue expected. Sue will have:
A. lost money on her short position. B. gained money on her short position. C. gained money on her long position. D. lost money on her long position.