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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly.
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a.   The saving rate is always equal to the investment rate.
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b.  A higher investment rate can sustain higher growth of out- put forever.
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c.   If capital never depreciated, growth could go on forever.
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d.   The higher the saving rate, the higher consumption in steady state.
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e.   We should transform Social Security from a pay-as-you-go system to a fully funded system. This would increase con- sumption both now and in the future.
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f.  The U.S. capital stock is far below the golden-rule level. The government should give tax breaks for saving because the U.S. capital stock is far below the golden-rule level.
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g.   Education increases human capital and thus output. It fol- lows that governments should subsidize education.
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