What is the relationship between financial market development and economic growth?
What will be an ideal response?
A country's economic growth is linked to financial market development. As the text points out, a country's financial system has to grow as its level of economic activity rises, or the country will stagnate. Economic research has shown that there is strong positive correlation between financial market development and economic growth across countries.
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How does fairness differ from equality?
The Endangered Species Act
a. weakened the property rights of landowners. b. encourages landowners to find new ways to provide habitat for listed species. c. provides compensation to landowners affected by the law. d. has not benefited any of the species protected under the act.
Which of the following is an example of an externality?
a. A paper mill dumps waste into the river. b. A neighbor's loud music disrupts sleep. c. A drunk driver causes an accident that injures another person. d. All of the above are correct.
Suppose a country offers a new investment tax credit. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?