2. In the presence of public education and human capital, if the initial private physical capital...

 

Transcribed Image Text:

2. In the presence of public education and human capital, if the initial private physical capital intensity is set so that human and physical capital explain significantly more than half of US historical growth then a. both the time path of growth rates and interest rates are consistent with the data b. the time of growth rates is consistent with the data but not the time path of interest rates c. the time of interest rates is consistent with the data but not the time path of growth rates d. neither the time path of growth rates nor interest rates are consistent with the data 2. In the presence of public education and human capital, if the initial private physical capital intensity is set so that human and physical capital explain significantly more than half of US historical growth then a. both the time path of growth rates and interest rates are consistent with the data b. the time of growth rates is consistent with the data but not the time path of interest rates c. the time of interest rates is consistent with the data but not the time path of growth rates d. neither the time path of growth rates nor interest rates are consistent with the data

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is c the time of int... View the full answer