Which of the following is most important for long-run growth and a healthy economy?
a. a low rate of household savings and a high rate of consumption
b. a high rate of both savings and consumption
c. a high rate of government expenditures financed by borrowing
d. high tax rates and budget surpluses
B
You might also like to view...
Countries import goods in which they have:
a. an absolute advantage. b. a comparative advantage. c. a reputation for good product quality. d. a comparative disadvantage. e. a surplus domestic production.
About 1 out of every _____ black Americans is poor.
A. 12 B. 7 C. 4 D. 2
Demand is said to be elastic if a ______.
a. 3 percent price increase causes a 2 percent reduction of quantity demanded b. 5 percent price increase causes a 5 percent reduction of quantity demanded c. 5 percent price increase causes a 40 percent reduction of quantity demanded d. 10 percent price increase cause an 8 percent reduction of quantity demanded
Exhibit 8-7 Consumption function
?
In Exhibit 8-7, the shift from C to C' could be caused by a(n):
A. increase in disposable income. B. expectation of inflation. C. increase in interest rates. D. increase in the level of saving.