Question: In the long run, an increase in the saving rate a. doesn't change the level of productivity or income. b. raises the levels of both

In the long run, an increase in the saving rate

a.

doesn't change the level of productivity or income.

b.

raises the levels of both productivity and income.

c.

raises the level of productivity but not the level of income.

d.

raises the level of income but not the level of productivity

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Equity method journal entries (price equals book value) Prepare journal entries for the transactions below relating to an Equity Investment accounted for using the equity method. a. An investor...

Q:

Assume a simple model of the US economy with no international trade. Suppose the government, in an effort to stimulate the economy, increases its spending on goods and services without changing...

Q:

The aggregate demand curve shows the relationship between the ________ and ________. a.real interest rate: quantity of real GDP supplied b.inflation rate; quantity of real GDP demanded c.nominal...

Q:

QUESTION 1 If the real interest rate is 3% and the inflation rate is 6%, the nominal interest rate is a.3% b.9% c.2% d.18% 1 points QUESTION 2 Many scholars believe that the importance of research...

Q:

Thanks in advance...detailed explanation V.2 The Blanchard OLG model for a closed economy is described by the two differential equations k = [( k) - a - (8 +g+b-m)k. ko> 0 given, (1) a = [5( in) - 8...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run? a.Aggregate demand will rise, the equilibrium price level will rise, and the...

Q:

The economic and social impacts of fully autonomous vehicles January 2021 - Publication 2020/4 While many people see autonomous vehicles as the solution to reduce congestion, traffic accidents and...

Q:

Chapter 1 Refresher on technology and firms I.1 Short questions (answering requires only a few well chosen sentences and possibly a simple illustration) a) Consider an economy where all firms'...

Q:

How would you prepare 60.0 mL of 0.200 M HNO3 from a stock solution of 4.00 M HNO3?

Q:

1. Think about smart questions job candidates ask at their interviews. what might be a smart question you would ask? Identify your intended career and then pose your question. What sort of response...

Q:

8. N (A E) A (E N) Use truth tables to determine whether the following pairs of symbolized statements are logically equivalent, contradictory, consistent, or inconsistent. First, determine...

Q:

and this problem, you will calculate the expected return and standard deviation of three different stocks and portfolio of stocks and choose the best investment opportunities excel 2016 project...

Q:

After the retirement of Justice Anthony Kennedy, President Trump nominated Free Response Questions: Concept Application Loge Breit Kavanaugh to fill his seat. The confirmation battle is expected to...

Q:

1 To what extent do you think worker reactions to reward strategies relate to national and organisational culture? Sinoelectronics is a large manufacturer, with over 7,000 employees, producing...

Q:

1 Which aspects of the approach at John Lewis might be exported to companies with different business models? The John Lewis Partnership is a well- known retailer in the UK. Staff are partners in the...

Q:

=+Part 4 Start by creating a strictly transit-oriented campaign. Consider using: Taxi cabs: outside top of cabs; inside. Bus: sides; benches; shelters. Subways: interiors; exteriors; platforms....