Consider the Long-Run Theory of Investment,saving,and Growth

question 105

Multiple Choice

Consider the long-run theory of investment,saving,and growth.In the long-run version of our macro model (with real GDP equal to Y*) ,the equilibrium interest rate is determined where

• A)aggregate demand equals aggregate expenditure.
• B)desired national saving equals desired investment.
• C)the nominal price level equals the real price level.
• D)desired consumption equals desired investment.
• E)desired saving equals desired consumption.

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Definitions:

Skewed Negatively

A description of a distribution of data where the majority of values are concentrated on the right of the mean, leading to a longer tail on the left side.

Distribution

The way in which something is shared out among a group or spread over an area.

Values

Quantitative or qualitative measurements, attributes, or properties of variables or items.

Class Intervals

Ranges of values within which data points are grouped for frequency distribution purposes.