The most effective fiscal stimulus will
a. create jobs, even if the employment is on unproductive projects.
b. substantially change the composition of aggregate demand.
c. encourage interest groups to lobby more intensely and make larger political contributions.
d. direct the economy to full employment and direct resources toward economically productive projects.
D
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Refer to Figure 19-5. Suppose the pegged exchange rate is $0.14/yuan and U.S. consumers increase their demand for Chinese products. Using the figure above, this would
A) increase the surplus of Chinese yuan. B) decrease the shortage of Chinese yuan. C) decrease the surplus of Chinese yuan. D) increase the shortage of Chinese yuan.
Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Pakistan?
A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton
Leverage is essential to a bank’s profitability, but it also increases risk.
Answer the following statement true (T) or false (F)
Which of the following is an obstacle to economic growth?
a. Political instability b. Government support for private industry c. Slow population growth d. Enforcement of private property rights e. The inability of special interest groups to block changes in economic policy