A luxury good has

As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?

i) The government's demand for loanable funds increased the real interest rate. ii) Investment expenditures were crowded out. iii) The supply of loanable funds curve shifted leftward. A) ii and iii B) i only C) ii only D) i and ii E) i, ii and iii

The "nonconvergence" problem with the Solow growth model is that

A) a higher return to capital in poor countries should essentially cause all nations to have roughly the same standard of living, yet they clearly do not. B) if a disturbance dislodges an economy from the steady-state point, it continues moving further from that point indefinitely. C) technological change is assumed to just "drop from the sky." D) a rise in the rate of national saving does not raise the growth rate of real GDP per person.