Investment 0.30 rate 0.25 0.20 0.15 0.10 0.05 0.05 0.10 0.15 0.20 0.25 0.30 Saving rate 19) Given the above graph, at the green dot, we can state: a) Saving rate > Investment rate and (X – M) > 0 b) Saving rate < Investment rate and (X – M) < 0 c) Saving rate < Investment rate and (X – M) > 0 d) Saving rate > Investment rate and (X – M) < 0 20) Exponential growth implies that: a) Growth rates can only be positive. b) Growth rates will alternate between positive and negative values every consecutive period. c) Relatively large differences in growth rates will translate into minor differences in the level of GDP per capita after many years of growth. d) Relatively small differences in growth rates will translate into substantial differences in the level of GDP per capita after many years of growth.

Investment 0.30 rate 0.25 0.20 0.15 0.10 0.05 0.05 0.10 0.15 0.20 0.25 0.30 Saving rate 19) Given the above graph, at the green dot, we can state: a) Saving rate > Investment rate and (X – M) > 0 b) Saving rate < Investment rate and (X – M) < 0 c) Saving rate < Investment rate and (X – M) > 0 d) Saving rate > Investment rate and (X – M) < 0 20) Exponential growth implies that: a) Growth rates can only be positive. b) Growth rates will alternate between positive and negative values every consecutive period. c) Relatively large differences in growth rates will translate into minor differences in the level of GDP per capita after many years of growth. d) Relatively small differences in growth rates will translate into substantial differences in the level of GDP per capita after many years of growth.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQP

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