Solved

Consider a Closed Economy in the Long Run

Question 44

Multiple Choice

Consider a closed economy in the long run. A country with a low national saving rate (as a fraction of real GDP) is likely to have


A) trouble achieving potential real national income in the short run.
B) an AS curve moving continually to the right.
C) either a high or low growth rate depending on the investment schedule.
D) a low growth rate because sustained high investment is not possible with low saving.
E) a high growth rate because aggregate expenditure will be high out of any given income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents