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  • The marginal product of capital is the increase in #231
  • Desired national saving equals #232
  • Which of the following factors are most important for determining the economic growth of a country? #233
  • The distinction between saving and savings is that saving is, while savings is #234
  • With no inflation and a nominal interest rate (i) of.03, a person can trade off one unit of current consumption for …units of future consumption #235
  • The desire to have a relatively even pattern of consumption over time is known as #236
  • An expensive and unexpected car repair causes Cathy to reduce her spending this year by $1000 and next year by $1000, as well. She spreads the cost of the repair over time because of #237
  • The government a new source of revenue from its ownership of natural resources that is likely to be permanent. As a result, the government surprises everyone by cutting taxes. In response, Jeff increases his spending this year by $1000 and next year by $1000, as well. He spreads his increased spending over time because of #238
  • When a person gets an increase in current income, what is likely to happen to consumption and saving? #239
  • Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1000. At the end of the year, he received a bonus of $1000 and he spent $500 of it, saving the other $500. What was his marginal propensity to consume? #240
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