Assume Two Economies Are Identical in Every Way Except That

question 11

Multiple Choice

Assume two economies are identical in every way except that one has a higher saving rate.According to the Solow growth model,in the steady state,the country with the higher saving rate will have __________ level of total output and __________ rate of growth of output as (than) the country with the lower saving rate.

• A)a higher;a higher
• B)a higher;the same
• C)a lower;a higher
• D)a higher;a lower
• E)the same;the same

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Definitions:

Personal/Rental Property

Real estate that is used by the owner or rented out to others, can be subject to different tax treatments based on its use.

Personal Use

The use of property or resources for individual needs or activities not related to business or profit-making.

Schedule C

Schedule C is a tax form used by sole proprietors to report their business income and expenses to the IRS.

Schedule E

Used by taxpayers to report income and losses from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.