Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.
Country National Saving
( of GDP) Growth rate of real GDP
per person Birth Rate
Japan 28 1.6 9.96
Canada 24 2.6 11.4
Germany 23 1.9 9.35
U.S. 14 1.9 14.2
www.econstats.com; www.os-connect.com If the data support the neoclassical growth theory, we would expect to see
A) Japan with the highest economic growth rate because the high saving means that more capital is accumulated.
B) the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption.
C) Canada with the highest economic growth rate because it has the highest real GDP per person.
D) the United States with the highest economic growth rate because it has the highest birth rate.
Question 2A bank cannot create money unless its ________.
A) required reserves are greater than actual reserves
B) excess reserves are zero
C) desired reserves are greater than actual reserves
D) excess reserves equal deposits multiplied by the reserve ratio
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