In the Solow growth model, an increase in the marginal propensity to consume shifts the ________, with the implied change in the capital stock resulting in a ________ standard of living in the long run
A) steady-state investment line upward, higher
B) steady-state investment line downward, higher
C) national saving line upward, lower
D) national saving line upward, higher
E) national saving line downward, lower
E
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Free market economies have led to
a. high growth rates but low efficiency. b. high efficiency and low growth rates. c. high growth rates and high efficiency. d. low growth rates and low efficiency.
The use of the coordinate system allows
a. for the display of the flows of dollars, goods and services, and factors of production in an economic system. b. for the display of how labor and other resources are organized in the production process. c. for the display of two variables on a single graph. d. for the creation of pie charts and bar graphs.