An increase in a country's saving rate permanently raises its productivity
a. True
b. False
Indicate whether the statement is true or false
True
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The term market always refers to
a. an arrangement in which an auctioneer plays at least a limited role in setting prices. b. an arrangement in which buyers and sellers meet at a specific time and place. c. a group of buyers and sellers of a particular good or service. d. a single buyer and seller of a particular good or service.
Under the natural rate hypothesis, expansionary monetary and fiscal policies can at best produce a:
a. permanent change in the unemployment rate. b. short-run change in the unemployment rate. c. permanent change in the inflation rate. d. short-run change in the long-run Phillips curve.
Which of the following describes differentiated products? a. They have close substitutes in the market
b. They cater to the needs of only the lower-income section of the population. c. The prices and quantities of such products are set by the government. d. The supply of such products is independent of the market price.
Which of the following can be called a "crowding-out" effect?
A. Government borrowing crowds out private saving. B. Exports crowd out government borrowing. C. Government borrowing crowds out private investment. D. Private consumption crowds out private investment.