How did the Mexican debt crisis of the early 1980s come about? How has the Mexican economy coped during the past 20 years, in the aftermath of the debt crisis? What has been the legacy of the debt crisis for the Mexican economy?

Initially, the economy is at point G in Figure 10-4 above. An increase in per capita savings from s(0 ) to s(1 ) will in the short run result in ________ and in the long run result in ________

A) excess per capita saving; more rapid growth in per capita output B) excess per capita saving; less rapid growth in per capita output C) more rapid growth in per capita output; more rapid growth in per capita output D) more rapid growth in per capita output; no change in the long run rate of growth in per capita output

If s = MPS, and t = income tax rate, the marginal leakage rate is

A) s(1 - t) + t. B) s -t. C) s(1 - t). D) t(1 - s) + t.