What is the source of the supply of loanable funds?
National saving.
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The inflation rate in Venezuela has increased between 2005 and 2010, rising from 14 percent per year to 31 percent per year. At the same time, the growth rate of real GDP fell from 10 percent per year to -2.6 percent per year
The quantity theory of money A) states that the inflation rate over the period would average 4 percent. B) predicts that the velocity of money will decrease over the period. C) states that the growth rate of money must have increased over the period. D) predicts that nominal GDP will decrease over the period.
Assume that there is a proposed tax cut by the U.S. House of Representatives. A problem is
a. how to distribute the benefits of the total tax cut among different groups within the country. b. that the process occurs very quickly without much time to study any negative effects. c. that tax cuts are harder to implement than tax increases. d. that the Federal Reserve has almost invariably been in favor of moderate tax increases rather than tax cuts. e. this statement is wrong, as tax bills originate in the U.S. Senate.
Since it is a centrally planned economy, China does not face opportunity costs when economic decisions are made
a. True b. False Indicate whether the statement is true or false
An example of an automatic stabilizer is
A) personal income taxes. B) inheritance taxes. C) veterans' benefits. D) corporate dividends.