Relying on piecemeal development projects or one-project-at-a-time investments may not propel an LDC out of poverty because
a. the World Bank only approves of the unbalanced growth development strategy and would finance no other strategy
b. the World Bank only approves of the big-push development strategy and would finance no other strategy
c. they do not include foreign investment or aid
d. they lack forward linkages
e. of the absence of an infrastructure
E
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"When the Fed makes an open market purchase of government securities, the quantity of money will eventually decrease by a fraction of the initial change in the monetary base." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
If two interdependent economies work independently pursuing the best interests of their own economies
A) both countries can end up worse than they planned because of international externalities. B) they will make other economies more vulnerable to international externalities. C) they will have to sacrifice their monetary autonomy to achieve their goals. D) both countries can end up worse than they planned because of the liquidity effect.
The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the
A) accelerator hypothesis of net investment. B) permanent-income hypothesis. C) life cycle hypothesis. D) adaptive expectations approach.
What is the essence of the problem with targeting with fiscal policy?
A. In order to meet interest rate targets, fiscal policy must be enacted very quickly. B. It is difficult for the government to determine the target unemployment rate. C. Economic data takes time to analyze, so the government may not know when the economy has reached its target. D. The government may not have projects ready that will employ the people who are unemployed.