If an economy is in a steady-state with no population growth or technological change and the capital stock is above the Golden Rule level and the saving rate falls:
a. output, investment, and depreciation will decrease, and consumption will increase and then decrease but finally approach a level above its initial state.
b. output, consumption, investment, and depreciation will all decrease.
c. output and investment will decrease, and consumption and depreciation will increase and then decrease but finally approach levels above their initial state.
d. output and investment will decrease, and consumption and depreciation will increase.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If an economy is in a steady-state with no population growth or technological change and the capital stock is above the Golden Rule level ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These bonds will sell at a price that is: Select one: A. More than $500,000. B.
Answers (1)
Retained earnings is the amount of cash that has been generated by the firm through its operations but has not been paid out to stockholders as dividends.
Answers (2)
ABC Company bonds are trading on the open market. These bonds mature in 10 years. The coupon rate on the ABC bonds are at 8.50%. The current price of the bonds is $1,062.50. What is the current yield to maturity of these bond
Answers (1)
What components of GDP (if any) would each of the following transactions affect? Explain. a. Uncle Henry buys a new refrigerator from a domestic manufacturer. b. Aunt Jane buys a new house from a local builder. c.
Answers (1)
On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
Answers (1)
New Questions in Business
UPS and FedEx both struggle to deliver the surge of packages they receive during the December holiday season.
Answers (1)
In Charles Dickins' Christmas Carol which grumpy character says 'Bah Humbug'?
Answers (2)
Does New Zealand have many hotel
Answers (1)
What is the process of earning interest on interest that you've already earned?
Answers (2)
A proposed new investment has projected sales of $592,000. Variable costs are 41 percent of sales, and fixed costs are $135,000; depreciation is $53,000. Prepare a pro forma income statement assuming a tax rate of 22 percent.
Answers (1)