Suppose a Recent Budgetary Policy Results in an Increase in the National

question 16

Multiple Choice

Suppose a recent budgetary policy results in an increase in the national saving rate. Such a change in the saving rate will not affect which of the following variables in the long run?

• A) The rate of growth of capital per worker.
• B) The level of output.
• C) The level of investment.
• D) Capital per worker.
• E) Output per worker.

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Definitions:

Just Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.

Proportional Difference

The comparison between two quantities or measurements in terms of their ratio or relative size.

Perceivable Difference

The smallest difference in stimulation that a person can detect 50% of the time.

Wavelength of Light Waves

The distance between consecutive peaks or troughs in a light wave, determining its color in the visible spectrum.