By World Bank’s prescription, if public sector investment in an economy takes up below 40% of total investment, economic growth could be adversely affected.A. TrueB. False

f the marginal propensity to save is 0.2 and the government decreases its purchases by $20 billion, then real GDP willDecrease by $25 billion.Decrease by $100 billion.Increase by $100 billion.Increase by $25 billion.

How does the public sector contribute to the economic development of the nation?Explain.

Economic Growth

A change in which of the following can affect the long-run economic growth of a country?I. TechnologyII. Money SupplyIII. Human CapitalIV. Physical CapitalV. Government Spending

When economy decides to save the whole of its additional income, then value of investmentmultiplier will be