In comparison to most developed economies, developing countries:
A. offer about the same degree of currency convertibility.
B. offer greater currency convertibility.
C. offer more restricted currency convertibility.
D. sometimes offer higher levels of currency convertibility and sometimes offer lower levels.
Answer: C
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Average tariff rates are highest for
A) high-income countries. B) middle-income countries. C) low-income countries. D) industrialized countries.
What does GDP measure to avoid double-counting?
a. final goods and services b. intermediate goods and services c. net exports d. all sales of goods and services
One reason unbalanced development strategies do not succeed is because they require a basic minimum ___________ that is not always in place
a. of markets b. of skilled work force c. big-push investments d. infrastructure e. entrepreneurial incentive
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls and real GDP rises. b. The real risk-free interest rate rises and real GDP remains the same. c. The real risk-free interest rate and real GDP remain the same. d. The real risk-free interest rate falls and real GDP falls. e. There is not enough information to determine what happens to these two macroeconomic variables.