The central role of ________ in a market economy is bringing together savers and borrowers
A) corporations
B) sole proprietors
C) financial intermediaries
D) stock exchanges
Answer: C
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The three ways of reducing a government budget deficit are to
A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrease government spending, increase real income, reduce the tax rate. D) decrease government spending, increase real income, increase the tax rate.
Among the following MPC values, which one would have the highest multiplier effect?
a. 1/3 b. 2/3 c. 3/4 d. 2/5
Which of the following has made the greatest contribution to economic growth over time?
A. Research and development. B. Improved human capital. C. Improved management techniques. D. Higher ratios of capital to labor.
Protection of new products from global competition is known as
A) the infant-industry argument. B) dumping. C) a quota. D) protection of domestic jobs.