An increase in a country's saving rate will tend to cause which of the following in the long run?
A) a reduction in per capita real GDP
B) an increase in economic growth
C) an increase in the unemployment rate
D) an increase in the rate of inflation
B
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Which of the following expenditures associated with the production of a new high-performance SUV will be directly included in GDP?
A) the sale of bonds to finance the construction of the assembly plant B) the purchase of used welding robots to assemble to vehicles C) the purchase of new tires to be installed on the new vehicles D) the purchase of new machine tools to manufacture the engines
In the open-economy macroeconomic model, if the supply of loanable funds shifts right, then
a. net capital outflow increases so the demand for dollars in the market for foreign-currency exchange shifts right. b. net capital outflow increases so the supply of dollars in the market for foreign-currency exchange shifts right. c. net capital outflow decreases so the demand for dollars in the market for foreign-currency exchange shifts left. d. net capital outflow decreases so the supply of dollars in the market for foreign-currency exchange shifts right.