Last Word) Over the past twenty-five years, China has averaged annual growth rates of nearly:

A. 5 percent.
B. 9 percent.
C. 12 percent.
D. 15 percent.


Ans: B. 9 percent.

Economics

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Management of expectations by a central bank is based on the view that ________

A) decreasing the federal funds rate will lead to a reduction in the discount rate B) if economic agents believe that the price of an individual asset will rise in the future, they will buy that asset today, contributing to its eventual price increase C) if households expect an increase in prices in the future, they will engage in spending today D) households will increase their spending today if they believe that the monetary authorities are committed to maintaining low interest rates

Economics

Which of the following is most likely to reduce the consumption of an exhaustible natural resource?

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Economics

Suppose that government imposes a specific excise tax on product X of $2 per unit and that the price elasticity of demand for X is unitary (coefficient = 1). If the incidence of the tax is such that the producers of X pay $1.75 of the tax and the

consumers pay $.25, we can conclude that the: A. supply of X is highly inelastic. B. supply of X is highly elastic. C. demand for X is highly inelastic. D. demand for X is highly elastic.

Economics