The supply-siders argue that investment is
a. primarily a function of current income.
b. highly responsive to changes in after-tax real interest rates.
c. primarily a function of expectations.
d. both a and b.
B
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Why may potential savings in a developing economy be greater than they appear? How can poor people be encouraged to save through financial institutions?
What will be an ideal response?
Which of the following statements about crowding out is false?
a. It is not caused by a budget surplus. b. It is caused by a budget deficit. c. It can completely offset the multiplier. d. It affects interest rates and not economic growth.
Which of the following would most likely exhibit the highest price elasticity of demand?
A) gasoline B) Colgate toothpaste C) motor oil D) salt
Which of the following is not necessarily a consequence of occupational licensing laws?
A) They restrict competition. B) Consumers pay higher prices for the services of licensed professions. C) They result in a higher quality of service. D) They ensure that licensed professionals meet some minimum qualifications.