Which of the following statements is (are) correct? According to the Feldstein-Horioka Saving Investment Puzzle
a. countries with relatively low saving to income ratios have relatively high investment to income ratios.
b. there is no correlation between investment and saving in developed countries.
c. countries with a high ratio of saving to income have high ratios of investment to income.
d. Both a and b
C
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Which of the statements best describes why the aggregate demand curve is downward sloping?
a. As the aggregate price level increases, consumer expectations about the future change. b. As the aggregate price level decreases, the stock of existing physical capital increases. c. An increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. e. As a good's price increases, holding all else constant, the good's quantity demanded decreases.
The incidence of a tax refers to
a. who actually collects the tax. b. how frequently the tax is collected. c. who bears the economic burden of the tax. d. how the tax affects prices or wages.