For this question, assume that a country experiences a permanent increase in its saving rate. Which of the following will occur as a result of this increase in the saving rate?
A) a permanently faster growth rate of output
B) a permanently higher level of output per capita
C) a permanently higher level of capital per worker
D) all of the above
E) both B and C.
E
Economics
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Historically, the U.S. government seems to have ________
A) run budget surpluses as often as budget deficits B) generally spent less than what it collected in taxes each year C) had difficulty running budget surpluses D) not needed to borrow to finance wars E) none of the above
Economics
If your real disposable income goes up by $1,000 per week, and your real consumption spending goes up by $800 per week, you have a marginal propensity to consume of
A) 0.2. B) 0.8. C) 1.2. D) 1.0.
Economics