The catch-up effect refers to the idea thatSelect one:a. If investment spending is low, increased saving will help investment to catch-upb. None of the answers are correctc. Saving will always catch-up with investment spendingd. It is easier for a country to grow fast if it starts out relatively poore. Rich countries aid relatively poor countries so as to catch them up

The catch-up effect is a theory in macroeconomics. Economics is divided into two parts;…

The catch-up effect refers to the idea that Select one: O a. If investment spending is low, increased saving will help investment to catch-up O b. None of the answers are correct O c. Saving will always catch-up with investment spending O d. It is easier for a country to grow fast if it starts out relatively poor O e. Rich countries aid relatively poor countries so as to catch them up

The catch-up effect refers to the idea that Select one: O a. If investment spending is low, increased saving will help investment to catch-up O b. None of the answers are correct O c. Saving will always catch-up with investment spending O d. It is easier for a country to grow fast if it starts out relatively poor O e. Rich countries aid relatively poor countries so as to catch them up

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Investment is defined as what consumers do with their savings. financial capital. O spending on…

A: Investment refers to addition of new capital by firms into their businesses with the goal of…

Q: a. How much more output does the $22 trillion U.S. economy produce when GDP increases by 1.0…

A: Answer a. Amount = $22 trillion Increase in GDP = 1.0 percent = 0.01 Therefore, The U.S. economy…

Q: Investment contributes to economic growth O True O Fabe

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose congress pass a law that offers a tax credit for firms that built new factories in the U.S.…

A: The question involves understanding the impact of a tax credit for firms building new factories in…

Q: O A. The consumption function shifts from A to B and the saving function shifts from C to D. O B.…

A: The consumption function is the relationship between disposable income and consumption. Whereas…

Q: Which of the following is not one of the three main categories of consumer expenditures? O A.…

A: 1) Residential investment is not one of the three main categories of consumer expenditures. 2) The…

Q: The diagram below show the market for financial capital assuming that national income is constant at…

A: Macroeconomic analysis, which gives critical information on a country's financial health, is the…

Q: QUESTION 20 Which of the following is correct? O A. The Bureau of Labor Statistics produces data on…

A: INTRODUCTION: The Bureau of Labor Statistics (BLS) is a federal agency that does collect and…

Q: I: Investment; G: Government spending; EX: Exports; T: Taxes; and IM: Imports. Suppose that I+G+EX…

A: At equilibrium, Y = C + I + G + EX - IM I + G + EX = 25 IM= 15 Y= C + 25 - 15 Y= C + 10

Q: In the two-period model, suppose that current consumption is a normal good. If the interest rate…

A: The two-period model is the one which explains the relationship between current consumption and…

Q: In the Loanable Funds Market Model, ceteris paribus, which of the following events would best…

A: Answer (C). The government reduced the tax rate on saving income.

Q: Suppose an economy produces steel, wheat, and oil. The steel industry produces $80,000 in rev- enue,…

A: GDP or Gross Domestic Product is defined as the value of final goods and services, which is bought…

Q: Which of the following statements are true? You may need to check public data. Select one or more: O…

A: The below data is issued by the customs of China for option C.

Q: Which of the following is considered investment by economists? O I purchased a $10,000 Treasury bond…

A: Investment in economics is the purchase of capital goods or goods that stimulate production of other…

Q: Over the business cycle, O A. only real GDP fluctuates around its trend and potential GDP remains…

A: The business cycle model shows how a country's real GDP changes over some time, going through stages…

Q: a.) How will COVID impact China’s GDP and consumption? b.) How did COVID affect manufacturing…

A: Consumption is the method in which people buy and use goods and services for themselves.

Q: 60. If Eman received a $1,000 increase in disposable income and her marginal propensity to save is…

A: Disposable Income = $1000 MPS (or Marginal Propensity to Save) = 0.15 Since, MPC + MPS = 1,…

Q: In the income-expenditure model, if autonomous investment decreases by $10 billion, a. planned…

A: The relationship between income and expenditure in an economy is depicted by the income expenditure…

Q: Related to the Economics in Practice on p. 156: According to the "paradox of thrift," as individuals…

Q: During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In the absence of technological progress, we know with certainty that an decrease in the saving rate…

A: In the Solow growth model, any change in technology and savings rate will have a significant impact…

Q: Which of the following is an example of investment? OA. Continental buying Airbus planes OB. Mike…

A: In economics, investment refers to the purchase of goods that are not consumed today but are used in…

Q: Figure 32-1 percent 8 10 20 30 40 50 60 70 $billions Refer to Figure 32-1. In the Figure shown, if…

A: The money demand curve is the downward-sloping curve. The money supply curve is the upward-sloping…

Q: Because of scarcity, people are more likely to do what? squander resources increase the profit…

A: Resource scarcity refers to the shortage of commodities needed to sustain life or a specific…

Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

The catch-up effect refers to the idea that
Select one:
a. If investment spending is low, increased saving will help investment to catch-up
b. None of the answers are correct
c. Saving will always catch-up with investment spending
d. It is easier for a country to grow fast if it starts out relatively poor
e. Rich countries aid relatively poor countries so as to catch them up

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is not an argument by those who oppose tax-law changes to encourage saving? O A. Saving is not very responsive to changes in the tax rate. O B. Saving is not an important determinant of a nation's ability to produce output. OC. Reducing the budget deficit instead of changing the tax laws could raise saving. O D. Changes in the tax laws to induce saving would distribute the tax burden less fairly.
Don't use chatgpt or chatgpt-4 or other ai tool. If you know correct answer then attempt if you gave wrong answer I will give 2 dislikes and more from my friends account.
When the U.S. government removes investment tax credits: O technological innovation advances more rapidly. O the cost of capital increases. O the return on investment increases. O capacity utilization in the economy expands. O consumption spending falls.
What of the following summarises the the paradox thirft? a. if all people reduce their consumption, the additional saving makes higher investment possible. b. if all people try to increase their saving simultaneously then consumption, income and emplyment will fall but the volume of saving will remain unchanged. c. higher saving is required to achieve higher investment. d. the proprotion of national income saved decreases if the marginal propensity to consume decreases.
A high interest rate will lead to: O a. low investment spending. O b. no investment spending. no changes in investment spending. O d. high investment spending. C.
In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of investment in the country was $2 million. What is the multiplier? Select one: O a. 6. O b. 5. c. 4. d. 1/4.