The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain
In the long run, a higher saving rate leads to higher levels of productivity and income per person but not to permanently higher growth in these variables. Therefore, the difference in saving rates between the two countries does not result in permanently-different rates of income growth.
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The part of the balance of payments that records a country's net exports, net investment income, and net transfers is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
Group disaster Mary, Jane, Janet and Samantha chose each other for a group project since they knew that they were all high achievers. Once the project rolled around however, their group actually did more poorly than the group where all the members knew that others were slackers. How did that happen?