This topic contains a solution. Click here to go to the answer

Author Question: In the neoclassical growth model, an increase in the saving rate will a. increase the long-run ... (Read 96 times)

burton19126

  • Hero Member
  • *****
  • Posts: 532
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Kedrick2014

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

A

Answer to Question 2

B





 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

For a complete list of videos, visit our video library