A fall in the domestic interest rate leads to capital outflows, which make the exchange rate depreciate. The monetary expansion of the mid-1990s was expected to lead to a currency appreciation.
Answer the following statement true (T) or false (F)
True
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In the classical model, the interest rate will adjust to equate
A) consumption spending with real GDP. B) saving with investment. C) export spending with import spending. D) the economic growth rate with the growth rate of import spending.
According to the functional distribution of income, in the United States,
A) capital earns most of the income. B) the income earned by capital and labor are approximately equal. C) labor earns most of the income. D) land earns most of the income. E) entrepreneurs earn most of the income.
A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called?
What will be an ideal response?
Explain why the LDCs are unable to invest much in capital goods and human capital.
What will be an ideal response?