A reduction in the budget deficit can be reflected in A) a ...

[clippers!]

A reduction in the budget deficit can be reflected in
 
  A) a reduction in private saving.
  B) an increase in investment.
  C) an increase in net exports.
  D) all of the above
  E) none of the above

Question 2

What are the three main conclusions that can be drawn from an analysis of growth rates for developed countries?
 
  What will be an ideal response?

[Tonny]

Answer to Question 1

D

Answer to Question 2

There are three main conclusions. First, standards of living have increased significantly since 1950. Second, growth rates of output per capita decreased starting in the mid 1970s. And third, the levels of output per capita have tended to converge over time.