Suppose the growth in GDP per hour resulting from physical capital in an economy is 1 and the growth resulting from human capital is 2. If the annual growth rate of GDP per hour is 5, the growth resulting from technology equals:
A) 4. B) 3. C) 2. D) 1.
Question 2
The transactions demand for money exists because households
A) do not like the fact that money is a liquid asset.
B) must save for unexpected emergencies.
C) are insensitive to interest rate changes.
D) do not receive their incomes at the same time they wish to make purchases.
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