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
D
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If private sector investment does not respond much to interest rate changes, then
A) there will be more crowding out when expansionary policies are undertaken. B) there will be less crowding out when expansionary policies are undertaken. C) fiscal policy will be less effective than monetary policy. D) monetary policy will be more effective than fiscal policy.
What two conditions are met when a consumer is maximizing utility?
What will be an ideal response?