Countries with higher savings rates tend to also have greater capital investment and higher growth rates of output per person.
True or false?
Answer : The answer is True.
Capital investment comes from savings. When savings rate is higher then capital investment become higher. With higher capital investment the output level increase. As a result, the output growth rate per person become higher. Therefore, the given statement is true.
Countries with higher savings rates tend to also have greater capital investment and higher growth rates...
Which of the following are true of capital as a determinant of economic growth? Check all that apply. a. Capital investment decreases per capita real GDP. b. As consumption increases, capital formation also increases. c. Countries with higher investment rates tend to have higher growth rates. d. Technological advances allow more output from the same amount of capital.
Statement 1: Rise in savings(or savings rate) is typically associated with higher growth rates. Statement 2: China has a lower growth rate than the USA for the last 5 years. A Statement 1 is True, Statement 2 is True. B Statement 1 is True, Statement 2 is False. C Statement 1 is False, Statement 2 is True. D Statement 1 is False, Statement 2 is False.
a). Empirical evidence suggests that poor countries do not have higher rates of return on capital. Explain why this evidence is at odds with the Solow growth model. b).Using an appropriate diagram, explain the effect of an increase in the population growth rate on the steady-state income per person. Show and explain how the saving rate must change in order for a rise in the population growth rate to leave the steady-state unchanged. Explain your answer intuitively.
Higher budget deficits would tend to a. raise interest rates b. reduce investment c. reduce the growth rate of the capital stock d. do all of the above
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true or false ; developing countries tend to focus more on the goal of economic growth than developed countries
Link w DOC d. 16. nase 29. According to the Solow-Swan theory of long-run economic growth, higher rates of saving for, equivalently, investment) lead to a higher income per person and higher consumption per person b. higher income per person and lower consumption per person c. higher income per person but not necessarily higher consumption per person d. higher consumption per person if the saving rate rises from an already high level and lower consumption per person if the saving...
Question 11 2 pts Suppose there are two very similar countries (call them Countries C and D). Both countries have the same population, and they are both experiencing the same population growth (that is, N is identical in both countries, and grows at the same rate 9N). Both countries also depreciate capital at the same rate (d) Suppose that both countries have the same technology and experience the same technological progress (9A is identical in both countries), that both countries...
Suppose there are two very similar countries (call them E and F). Both countries have the same population and neither is experiencing population growth (that is, N is identical and constant in both countries). Both countries depreciate capital at the same rate, the both have the same savings rate, they both have the same technology, and there is no technological progress. Suppose that currently both countries are in steady state, when an earthquake destroys half of the capital stock of...