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For a country to acquire more physical capital it must forgo current consumption

For a country to acquire more physical capital it must forgo current consumption

For a country to acquire more physical capital:

A. it must forgo current consumption.

B. it faces the investment trade-off.

C. it must pay for the investment by reducing current consumption.

D. All of these are true.

112.If a country devotes its resources to acquiring more physical capital:

A. it will increase its productivity.

B. it will decrease its current consumption.

C. it will increase its output per person.

D. All of these are true.

113.If a country devotes its resources to acquiring more physical capital:

A. it faces the investment trade-off.

B. it will have more GDP per capita in the future.

C. it will have less current consumption.

D. All of these are true.

114.Household savings rates:

A. vary enormously across countries.

B. are remarkable similar across countries.

C. seem to be similar for countries within the same continent.

D. are impossible to compare across countries.

115.Savings that pay for capital investment can come from:

A. within a country.

B. outside a country.

C. domestic savings.

D. All of these are true.

116.Domestic savings:

A. is equal to domestic income minus consumption spending.

B. comes from private households spending less than they earn.

C. occurs when government revenues exceed noncapital expenditures.

D. All of these are true.

117.Household savings rates:

A. vary enormously across countries.

B. can be negative.

C. are generally higher in China than in the United States.

D. All of these are true.

118.Household savings rates:

A. were negative in the United States in 2005.

B. were 38 percent in the United States in 2005.

C. were fairly constant at about 5 percent in the United States from 2000 to 2010.

D. have been roughly 15 percent in the United States for the last 30 years or so.

119.Household savings rates:

A. were negative in China in 2005.

B. were 38 percent in China in 2005.

C. were fairly constant at about 8 percent in China from 2000 to 2010.

D. have been roughly 10 percent for the last 30 years or so in China.

120.Governments:

A. can use tax revenues to invest in physical capital.

B. will fund underlying infrastructure to increase the productivity of business.

C. encourage economic growth by investing in physical capital.

D. All of these are true.

abhinav behal 15-Feb-2020

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