Question

obhens ot Applications (ch o1) c Back to Assignment Attempts Averager /3 10, Problems and Applications 910 Suppose Americans decide to save more of their incomes, providing banks with more funds to lend to businesses for investment. This allovs for faster growth inY therebiythe overall standard of living Factory owners willfrom the change in productivity growth because they will receive True or False: Society can receive "free lunch" when it builds new factories. retun on their investments O True O False

(1) Inflation or productivity

(2) raising or lowering

(3) lose or benefit

(4) lower or higher

Answer 1

(1) Higher savings allows for faster growth in productivity, thereby raising overall standard of living.

(2) Factory owners will benefit from change in productivity growth because they will receive a higher return on their investments.

(3) False

Building new factories will increase employment which is beneficial to society, but also create pollution which is harmful. So there is no free lunch.