QUIZ 7.doc - QUIZ 7 8 A B C D causes the capital stock to rise while cause the capital stock to fall Inflation deflation Interest rates the discount

QUIZ 7.doc - QUIZ 7 8 A B C D causes the capital stock to...

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QUIZ 78.______ causes the capital stock to rise, while ______ cause the capital stock to fall. A)Inflation; deflation B)Interest rates; the discount rate C)Investment; depreciation D)International trade; depressions Exhibit: The Capital-Labor Ratio 9.(Exhibit: The Capital-Labor Ratio) In this graph, starting from capital-labor ratio k1, the capital-labor ratio will: 10.A reduction in the saving rate starting from a steady state with more capital than the Golden Rule causes investment to _____ in the transition to the new steady state. Exhibit: Capital-Labor Ratio and the Steady State Page 1
11.(Exhibit: Capital-Labor Ratio and the Steady State) In this graph, capital-labor ratio k2is not the steady-state capital-labor ratio because:

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