Chad and Libya are two economies in Africa. Suppose Libya's national income is twice the size of Chad's but Libya's economic growth is only half the growth rate of Chad's. Suppose as well that the MPC in each is 0.75 . You would expect then that the
a. level of investment is higher in Chad than in Libya but the level of saving is higher in Libya than in Chad
b. level of investment is lower in Chad than in Libya but the level of saving is lower in Libya than in Chad
c. level of investment and of saving is higher in Chad than in Libya
d. level of investment and of saving is lower in Chad than in Libya
e. consumption is greater than saving in Chad but lower than saving in Libya
A
You might also like to view...
Under perfect competition, the demand curve facing the firm is determined by
A) the intersection of the industry demand and supply curves. B) the tastes and preferences of consumers. C) utility maximizing behavior on the part of consumers. D) the willingness of the firm to supply the good.
Under the cartel, the individual firm's economic profit is (assuming that it wants to cheat on its quota) 
Figure 42.2
A. zero. B. the smaller of the dashed-line boxes. C. between the size of the two dashed-line boxes. D. the larger of the dashed-line boxes.