Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 27, Problem 11CQ
To determine
Check whether the people of high income per capita countries will help or hurt the low income per capita countries.
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Economics: Private and Public Choice
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- Draw a graph of "catch-up" displaying low saving rates, low levels of health, and low levels of education in a country.arrow_forwardWhy does most countries have different investment priorities?arrow_forwardwhat causes two countries to have similar savings rates but different growth ratearrow_forward
- Briefly explain whether investment spending is likely to increase more rapidly in a country with a rapidly growing population or in a country with a slowly growing population. Does your answer depend on whether the country is a high-income industrial country or a low-income developing country?arrow_forwardIn an open economy, why is the supply of loanable funds upward sloping? a) A higher real interest rate discourages domestic consumers from buying foreign assets. b) A lower interest rate makes borrowing more expensive. c) A lower real interest rate encourages people to save. d) A higher real interest rate encourages people to save.arrow_forwardWhen one person saves more, that person’s wealth is increased, meaning that he or she can consume more in the future. But when everyone saves more, everyone’s income falls, meaning that everyone must consume less today. Explain this seeming contradiction.arrow_forward
- How should countries operate relative to their investment opportunities?arrow_forwardHow can a government encourage saving and capital accumulation, research and development and free international trade?arrow_forwardWhich gap will a sudden increase in the wages demanded by workers cause? an equilibrium gap an expansionary gap a recessionary gap an inflationary gaparrow_forward
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