Capital is
A) liquidity.
B) interest.
C) produced goods that can be used to produce future goods.
D) non-existent in a socialist economy.
E) all of the above.
C
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If resources are used efficiently, then ________
A) marginal social cost is minimized B) consumer surplus plus producer surplus is maximized C) consumer surplus equals producer surplus D) producer surplus is maximized
To pay for a current account deficit, a country can
A) borrow money from abroad. B) lend money abroad. C) increase official reserves to cover the shortfall. D) transfer money from the capital account to the official settlements account.
Deviations from interest rate parity could be due to transaction costs, differential taxation, government controls, and political risk
Indicate whether the statement is true or false
In Monetarist theory, the role of the government should be to:
a. Control prices. b. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments. c. Do everything in its power to promote exports. d. All of the above. e. None of the above.