The quantity theory of money:
A. has become increasingly irrelevant.
B. is more relevant today than ever before.
C. is no longer relevant.
D. is relevant in some cases but not others.
Answer: D
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Approximately what percent of all world production of goods and services is exported to other countries?
A) 10% B) 30% C) 50% D) 100% E) 90%
Based on the rule of 72, it would require 18 years for an economy to double its real output if the annual growth rate was 4%
a. True b. False Indicate whether the statement is true or false
The strict crowding-out argument relies on the assumption that
a. the government must raise taxes to pay for spending, and the tax increase crowds out the stimulative effect of increased spending. b. the total flow of saving is a fixed amount. c. investment is invariant to interest rates, but very dependent on aggregate spending. d. consumption will rise to absorb most of an increase in income, and investment will accordingly fall.
The country of Solidia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Solidia's
a. real interest rate to rise. b. real exchange rate to rise. c. net exports to rise. d. None of the above is likely.