EC140 Midterm 2 Practice Questions


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Unformatted text preview: aise current living standards. r B) ower future living standards. l C) aise current consumption. r D) aise future consumption. r E) ecrease the long-run growth rate. d 43) or a given level of national income, an increase in private consumption F will cause national saving to A) xceed investment. e B) emain unchanged from its initial level. r C) ecrease. d D) row at a constant rate. g E) ncrease. i 38) ______ 39) ______ 40) ______ 41) ______ 42) ______ 43) ______ 11 44) onsider the market for loanable funds for a closed economy in the long 44) ______ C run. Other things being equal, a country with a high national saving rate will tend to have A) n AS curve moving continually to the left. a B) ither a high or low growth rate depending on the investment e demand schedule. C) high growth rate because sustained high investment is possible a with high saving. D) rouble achieving potential real national income in the short run. t E) high growth rate because aggregate expenditure will be high out a of any given income. The diagram below show the market for loanable funds assuming that national income is constant at Y*. FIGURE 26-2 45) efer to Figure 26-2. Suppose...
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