According to the concept of the liquidity trap,
A. at very low interest rates people would put their money in the bank.
B. at very low interest rates people would simply hold their money.
C. at very high interest rates people would simply hold their money.
D. people will lend out their money no matter what the interest rate happens to be.
B. at very low interest rates people would simply hold their money.
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Discuss the impact of the restoration of convertibility in 1958
What will be an ideal response?
Which of the following statements is TRUE about the role that service exports and imports have in the balance of payments?
A) Service exports and imports are not included in the balance of payments because it is impossible to transport a service to another country. B) Service exports and imports are included in the balance of payments in the labor account. C) Service exports and imports are included in the balance of payments in the official reserve transactions account. D) Service exports and imports are included in the balance of payments in the current account.
Which of the following countries have liberalized their economies and substantially improved their economic freedom rating since 1990?
a. Argentina and Brazil b. Zimbabwe and the Republic of Congo. c. Estonia and India d. Italy and France
A firm that is a natural monopoly
a. is not likely to be concerned about new entrants eroding its monopoly power. b. is taking advantage of diseconomies of scale. c. would experience a lower average total cost if more firms entered the market. d. All of the above are correct.