Why do poor countries often have lower rates of economic growth than richer countries?
What will be an ideal response?
If a large part of a country's population is poor, it is very difficult to forgo current consumption to invest in research and development of new technologies or new capital equipment. With less investment, the rate of economic growth in the country will be lower.
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National income is the sum of
a. wages and profits. b. wages, interest, profits, and rent. c. interest and rent. d. wages, transfer payments, and tax revenues.
Consumers are usually sensitive to price.
a. true b. false
The determination of the nation's money supply is called:
A. monetary policy. B. trade policy. C. fiscal policy. D. structural policy.
If the level of excess reserves in the banking system drops suddenly, we might expect that the:
A. required reserve ratio would fall. B. federal funds rate would rise. C. discount rate would rise. D. prime rate would fall.