In the basic Solow model, an economy in a steady state has an
economic growth rate equal to
a. The depreciation rate b. The savings rate c. The marginal
product of capital d. Zero
2. Long time lags in the implementation of monetary policy a.
Reduce the ability of the Fed to manage the economy b. Enhance the
ability of the Fed to manage the economy c. Reduce the monetary
base d. Increase the monetary base
3. An important principle...