Explain the motives of developed countries in providing foreign aid
What will be an ideal response?
Creation of markets, geopolitical influence, etc., discussed in the chapter.
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According to the table above, which of the following exhibit decreasing returns to scale?
A) tobacco products and clothing, but not furniture B) transportation equipment and food, but not paper products C) transportation equipment, food, and paper products D) furniture and electronic equipment, but not tobacco products
In the above figure, when the price of Good B increases, the result can be shown by
A) the movement from D1 to D2 in Graph A. B) the movement from D2 to D1 in Graph A. C) the movement along D0 from P1 to P2. D) the movement along D0 from P2 to P1.
A risk premium is additional interest, in excess of the market rate, that a bondholder receives in order to compensate him for
a. systematic risk. b. inflation. c. default risk. d. the bond discount.
An outside lag is:
A. a lag in implementing policy. B. the period of time it takes for policies to work. C. a policy aimed at increasing GDP. D. a policy aimed at reducing GDP.