Which of the following is likely to increase the productivity of workers in an economy?
A) The discovery of an oil field
B) An increase in the number of years of training that each worker receives
C) An increase in the aggregate price level
D) An increase in the labor force participation rate in the economy
Question 2
If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of 0.5 trillion, then saving will
A) increase by 0.25 trillion. B) increase by 0.5 trillion.
C) increase by 1 trillion. D) remain unchanged.
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