questioon 5 

List the determinants of the economic growth.

 

Question 6

Consider the market for financial capital and the relationship among saving, investment, and the interest rate. In what follows, assume that the economy is in a long-run equilibrium with  

6.1 Suppose the government wants to encourage national saving. How would it do this, and what would be the effects of such a policy?

6.2 Suppose instead that the government to encourage investment. How might this be accomplished, and what would be the effects?

6.3 It is often heard in public debate that “high interest rates are bad for investment and growth.” Is this true?

Answer rating: 100% (QA)

Determinants of economic growth 1 Natural resources If there are more resources available then econo... View the full answer