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Author Question: In the neoclassical growth model, an increase in the saving rate will a. increase the long-run ... (Read 49 times)

burton19126

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on: Jun 30, 2018
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.


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Kedrick2014

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


burton19126

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Reply #2 on: Jun 30, 2018
Correct answers!


Kedrick2014

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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