When all the factors of aggregate expenditure are influenced by income, the multiplier is no longer solely a function of the marginal propensity of consumption
a. True
b. False
Indicate whether the statement is true or false
True
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What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries
What will be an ideal response?
Since depositors, like any lender, only receive fixed payments while the bank keeps any surplus profits, they face the ________ problem that banks may take on too ________ risk
A) adverse selection; little B) adverse selection; much C) moral hazard; little D) moral hazard; much
When deciding what to use as money, one characteristic to look for is the:
A. stability of value. B. shape. C. intrinsic value. D. exchange value
The dollar shortage in international exchange markets in the early 1950's was related to
a. an outflow of gold from the United States. b. large surpluses in the U.S. balance of trade. c. large deficits in the U.S. balance of trade. d. both an outflow of gold from the United States and large surpluses in the U.S. balance of trade.