( 1.) Why might a nation attempt to increase its savings rate? A. Saving results
ID: 1127749 • Letter: #
Question
( 1.) Why might a nation attempt to increase its savings rate?
A. Saving results in productive investment.
B. Saving is morally virtuous.
C. There is no reason to increase the savings rate.
( 2.) The crowding out effect occurs when
A. Government borrowing results in a decrease in investment.
B. Government borrowing results in an increase in investment.
C. Investment results in a decrease in government borrowing.
D. Investment results in an increase in government spending.
( 3.) Which of the following might reasonably increase worker productivity?
A. Worker training programs.
B. Research on new production technologies.
C. Greater investment of physical capital.
D. All of the above.
( 4.) $500,000 of capital invested in a lower income country will likely increase productivity ____________ the same investment in an upper income country.
A. More than
B. The same as
C. Less than
D. Investment will have no effect on productivity.
( 5.) The government takes in $200,000 in taxes and spends $300,000. The government is running
A. A surplus of $100,000.
B. A surplus of $500,000.
C. A deficit of $100,000.
D. A deficit of $500,000.
Explanation / Answer
Answer:- ( 1.) Why might a nation attempt to increase its savings rate?
Correct Answer:- A. Saving results in productive investment.
Answer:- ( 2.) The crowding out effect occurs when
Correct Answer:- A. Government borrowing results in a decrease in investment.
Answer:- ( 3.) Which of the following might reasonably increase worker productivity?
Correct Answer:- All of the above
Answer:- ( 4.) $500,000 of capital invested in a lower income country will likely increase productivity ____________ the same investment in an upper income country.
Correct Answer:- A. More than
Answer :- 5.) The government takes in $200,000 in taxes and spends $300,000. The government is running
Correct Answer:- C. A deficit of $100,000.
Reason:- Deficit = 200000-300000=-100000
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