Which of the following would likely increase private saving?
a. both expansion of means testing and a consumption tax
b. expansion of means testing, but not a consumption tax
c. a consumption tax, but not expansion of means testing
d. neither expansion of means testing nor a consumption tax
c
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A ________ pays out cash flows from a collection of assets in different tranches, with the highest-rated tranch paying out first, while lower ones paid out less if there are losses on the underlying assets
A) collateralized debt obligation (CDO) B) adjustable-rate mortgage C) negotiable CD D) discount bond
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.