The Next Questions Refer to the Following

question 9

Multiple Choice

The next questions refer to the following.
Consider an economy with the production function , a depreciation rate of 5%, a saving and investing rate of 10%, and no labor growth.
-If the saving and investing rate rose to 20% of income,in the long run,this economy's GDP would

• A) increase by 10%
• B) decrease by 10%
• C) double
• D) stay the same
• E) rise by a factor of 10

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Definitions:

Use Of Checks

The practice of using checks as a method of payment; involves writing, issuing, or receiving checks as a way to transfer money.

14th Century

The period extending from the year 1301 to 1400 in the Gregorian calendar, marked by significant historical events globally.

After World War II

The period following the end of the second global conflict in 1945, characterized by the establishment of the United Nations, the beginning of the Cold War, and significant social and economic changes worldwide.

Overdraft

An amount beyond what is currently in the account.