Homework Answers
The growth rate in the Solow model is not permanently affected by a higher saving rate. A higher saving rate leads to a higher stable capital stock and a higher output level.The shift from a lower to a higher steady-state output level causes the growth rate to rise temporarily. A higher saving rate may permanently raise the rate of economic growth in some newer growth theories. However, these newer theories have not been thoroughly tested empirically.
A steady increase in the saving ratio will permanently raise the level of output, but not its growth rate. Growth will be higher during the transition period, which could last decades. But the increased investment eventually results in an increase in depreciation offsetting, and therefore offset income per employee. For provided technology, saving and capital accumulation alone can not justify long-term economic growth.
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UTVU. 1. Does increasing a country's savings rate permanently increase its growth rate? Why or why...
permission to do so from me in advance. 1. Does increasing a country's savings rate permanently increase its growth...
permission to do so from me in advance. 1. Does increasing a country's savings rate permanently increase its growth rate? Why or why not?
and Suppose a country's central bank announces that it is increasing the money growth rate. The...
and Suppose a country's central bank announces that it is increasing the money growth rate. The country's currency will suddenly its rate of depreciation will then appreciate; rise appreciate; fall depreciate; rise O depreciate; fall
rate of economic growth 4. Suppose a country's govemment wants to increase the country's Identify two...
rate of economic growth 4. Suppose a country's govemment wants to increase the country's Identify two different types of policies or activities the govenment can do to encourage economic growth. Clearly describe how each of these activities will increase growth (8 points)
rate of economic growth 4. Suppose a country's govemment wants to increase the country's Identify two different types of policies or activities the govenment can do to encourage economic growth. Clearly describe how each of these activities will...
Question 12 0.2 pts Suppose there is a permanent increase in a country's saving rate. This...
Question 12 0.2 pts Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause: O a permanently higher level of capital per worker. a permanently higher level of output per capita. a permanently faster growth rate of output. both of the first two answers above O none of the above.
An important factor in determining a country's rate of economic growth is its rate of saving....
An important factor in determining a country's rate of economic growth is its rate of saving. the size of its labor force. the proportion of the adult population that is working. the diversity of its population.
Please answer the following questions: QUESTION 1 An increase in a country's saving rate will tend...
Please answer the following questions:
QUESTION 1 An increase in a country's saving rate will tend to cause which of the following in the long run? O an increase in the unemployment rate O a reduction in per capita real GDP O an increase in the rate of inflation O an increase in economic growth QUESTION 2 Regarding open economies, economists tend to find evidence that o open economies tend to have access to smaller markets than do closed economies....
Suppose a country wanted to increase the rate of growth of its per capita real GDP....
Suppose a country wanted to increase the rate of growth of its per capita real GDP. It could do this by A.decreasing the growth rate of real GDP and decreasing the population growth rate. B.decreasing the growth rate of real GDP and increasing the population growth rate. C.increasing the growth rate of real GDP and increasing the population growth rate. D.increasing the growth rate of real GDP and decreasing the population growth rate.
Donovan Brothers, Inc. would like to increase its internal rate of growth. Increasing which one of...
Donovan Brothers, Inc. would like to increase its internal rate of growth. Increasing which one of the following will help the firm achieve its goal? 1) Return on assets 2) Net income 3) Retention ratio 4) Return on equity 5) All of the above Question 2 (1 point) A loan has an APR of 8.5 percent and an EAR of 8.5 percent. Given this, the loan must: 1) have a one-year term.
If the money supply growth rate permanently increased from 4 percent to...
Question 35 If the money supply growth rate permanently increased from 4 percent to 10 percent, what would we expect to happen to the inflation rate and the nominal interest rate? Both the inflation rate and the nominal interest rate would increase by less than 6 percent. The inflation rate would increase by 6 percent, and the nominal interest rate would increase by less than 10 percent. The inflation rate would increase by less than 6 percent, and the nominal interest rate would increase...
1/ Which of the following changes would cause a country to have permanently higher output per...
1/ Which of the following changes would cause a country to have permanently higher output per worker? a. A higher savings rate. b. A higher population growth rate. c. A war that lowers its population by one-half. d. None of the above. 2/ The Harrod-Domar model predicts that investment will lead to permanently higher growth of income per capita. What property does it fail to account for? a. Capital depreciates. b. Production of new capital requires saving and investment today....
permission to do so from me in advance. 1. Does increasing a country's savings rate permanently increase its growth rate? Why or why not?
and Suppose a country's central bank announces that it is increasing the money growth rate. The country's currency will suddenly its rate of depreciation will then appreciate; rise appreciate; fall depreciate; rise O depreciate; fall
rate of economic growth 4. Suppose a country's govemment wants to increase the country's Identify two different types of policies or activities the govenment can do to encourage economic growth. Clearly describe how each of these activities will increase growth (8 points)
rate of economic growth 4. Suppose a country's govemment wants to increase the country's Identify two different types of policies or activities the govenment can do to encourage economic growth. Clearly describe how each of these activities will...
Question 12 0.2 pts Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause: O a permanently higher level of capital per worker. a permanently higher level of output per capita. a permanently faster growth rate of output. both of the first two answers above O none of the above.
Please answer the following questions:
QUESTION 1 An increase in a country's saving rate will tend to cause which of the following in the long run? O an increase in the unemployment rate O a reduction in per capita real GDP O an increase in the rate of inflation O an increase in economic growth QUESTION 2 Regarding open economies, economists tend to find evidence that o open economies tend to have access to smaller markets than do closed economies....
Donovan Brothers, Inc. would like to increase its internal rate of growth. Increasing which one of the following will help the firm achieve its goal? 1) Return on assets 2) Net income 3) Retention ratio 4) Return on equity 5) All of the above Question 2 (1 point) A loan has an APR of 8.5 percent and an EAR of 8.5 percent. Given this, the loan must: 1) have a one-year term.
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