Which of the following factors are most important for determining the economic growth of a country?
A. The independence of the country's central bank
B. The country's level of resources
C. The country's rates of saving and investment
D. The level of sophistication of a country's financial markets
Answer: C
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What is a rent ceiling and what are its effects if it is set above the equilibrium rent?
What will be an ideal response?
When economic choice involves an adjustment to an existing situation, marginal analysis
a. has no practical applications or real-world uses b. eliminates incorrect decisions and bad choices c. involves comparing the additional costs and additional benefits of an activity before deciding d. involves examining only the total costs and total benefits of an activity before deciding e. none of the above
Suppose, before the Asian financial crisis, the Thai baht was fixed against the dollar at a rate of 26 bahts for one U.S. dollar. If the exchange rate were allowed to float freely, the market would then set the rate at 35 bahts for one dollar. Under these circumstances, we say that the baht was:
a. about to appreciate. b. fixed below its par value. c. overvalued. d. undervalued. e. revalued.
Which of the following definitions of the money supply includes only the most liquid forms of money?
a. M1 b. M2 c. savings deposits. d. money market mutual deposits.