Question

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. the more closed an economy is, the higher the rate of growth the economy will experience. O trade tariffs tend to improve economic growth. free trade encourages a more rapid spread of technology, and hence increases economic growth. QUESTION 3 Economic growth tends to be higher in a country that O has a low saving rate. O has an undeveloped system of property rights. O has an open economy that encourages the rapid spread of technology. does not grant patents to investors.

Answer 1

a) "D"

in the long run an increased saving rate will lead to an increase in the economic growth.

b) "D"

Free trade lead to a higher growth in the market.

c) "C"

have open market and trdae,