Other Things the Same,if a Country Raises Its Saving Rate,when

question 143

Multiple Choice

Other things the same,if a country raises its saving rate,when is productivity growth higher?

• A)as the economy moves toward the long run and in the long run.
• B)as the economy moves toward the long run,but not in the long run.
• C)in the long run,but not as the economy moves toward the long run.
• D)neither as the economy moves toward the long run,nor in the long run.

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Definitions:

Utility Function

A mathematical representation in economics that shows the relationship between the overall utility a consumer derives from different bundles of goods.

Parameters A And B

Symbols that represent constants in mathematical models and equations, often defining the shape or behavior of a function.

Quasilinear

Pertains to a specific form of utility or preference where the utility is linear in one of the goods, allowing for easy analysis of changes in wealth without affecting marginal utilities of other goods.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods or outcomes.