Which of the following statements is true?
A) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a larger principal.
B) Banks are the only financial institutions that lend money and do not accept deposits.
C) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a smaller principal.
D) Banks are the only financial institutions that do not lend money but accept deposits.
A
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Adam Smith was an American economist that published The Wealth of Nations, one of the most important books in the history of economic thought
Indicate whether the statement is true or false
If there is ongoing inflation in an economy, the value of real GDP will be greater than the value of nominal GDP
a. True b. False Indicate whether the statement is true or false
Which of the following most accurately states the function of middlemen?
a. Middlemen add to the expense of buyers and sellers without providing any benefit. b. Our economy would work just as well without middlemen since they do not expand the availability of physical goods. c. Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net revenue. d. Middlemen create value by arranging trades and providing information to buyers and sellers.
The multiplier principle is important because it
a. was central to economic theory before Keynes. b. implies that investment will help stabilize the economy. c. shows why small shifts in investment have a powerful influence on national income. d. illustrates why a small change in income causes a large change in saving.