Label each of the following statements true, false, or uncertain. Explain briefly. a. The saving rate is

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Label each of the following statements true, false, or uncertain. Explain briefly.

a. The saving rate is always equal to the investment rate.

b. A higher investment rate can sustain higher growth of output forever.

c. If capital never depreciated, growth could go on forever.

d. The higher the saving rate, the higher consumption in steady state.

e. We should transform Social Security from a pay-as-you-go system to a fully funded system. This would increase consumption both now and in the future.

f. The US government should give tax breaks for saving because the US capital stock is far below the golden-rule level.

g. Education increases human capital and thus output. It follows that governments should subsidize education.

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Macroeconomics

ISBN: 9780134897899

8th Edition

Authors: Olivier Jean Blanchard

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