In the neoclassical growth model, an increase in the saving rate ...

[burton19126]

In the neoclassical growth model, an increase in the saving rate will
 
  a. increase the long-run equilibrium rate of growth in output.
  b. reduce the long-run equilibrium rate of growth in output.
  c. leave the long-run equilibrium rate of growth in output unchanged.
  d. affect the long-run equilibrium rate of growth in output but the direction of the effect is uncertain.

Question 2

Under perfect capital mobility and a floating exchange rate system, expansionary fiscal policy leads to
 
  a. an increase in income and the interest rate.
  b. no change in the interest rate and a fall in the trade balance.
  c. no change in the interest rate and a decrease in income.
  d. an increase in interest rates and a fall in the trade balance.
  e. no change in interest rates and the exchange rate.

[Kedrick2014]

Answer to Question 1

A

Answer to Question 2

B

[burton19126]

Correct answers!

[Kedrick2014]

Great! Please up vote