The economy will grow from points B to G in Figure 10-3 above over time because
A) per person saving and steady state investment will remain stable at points C and D respectively.
B) per person capital will grow, point D to E since per capita savings exceed steady state investment, point C is greater than point D.
C) per person capital will grow, point D to E since per capita savings is less than steady state investment, point C is greater than point D.
D) per person saving and steady state investment will remain stable at points D and C respectively.
B
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The figure above shows a nation's consumption function. If disposable income is $2 trillion, then the MPC is ________ and saving is ________
A) negative; positive B) positive; zero C) positive; negative D) positive; positive E) negative; negative
Which of the following will not shift the demand curve for a good?
A) an increase in population B) a decrease in the price of a substitute good C) an increase in consumer incomes D) an increase in the price of the good