A reduction in a country's saving rate will tend to cause which of the following in the long run?
A) an increase in labor productivity B) an increase in the standard of living
C) a reduction in economic growth D) an increase in per capita real GDP
C
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If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a
A) store of value. B) medium of exchange. C) mechanism for transforming present purchases into future purchases. D) unit of account.
The main policy designer of the Federal Reserve system is the
A) 12 district banks. B) President and Congress. C) Federal Open Market Committee. D) Council of Economic Advisors.
If domestic residents are restricted in their ability to purchase foreign assets then their government is imposing:
A. controls on capital outflows. B. controls on both capital inflows and outflows. C. fixed exchange rates. D. controls on capital inflows.
Explain the economic fallacy in the statement: “If the Jones family would just cut up their credit cards and live within their means, they’d be better off. And if consumers in this nation cut up their credit cards and lived within their means, the
nation would be better off.” Please provide the best answer for the statement.