Saving
A) slows growth because it decreases consumption.
B) finances investment which brings capital accumulation.
C) has no impact on economic growth.
D) is very low in most East Asian nations.
E) is important for a country to gain the benefits of international trade.
B
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Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes the value of the dollar to _____, while expansionary monetary policy causes the value of the dollar to _____
a. rise; rise b. fall; fall c. fall; rise d. rise; fall
When indifference curves are downward sloping, the marginal rate of substitution is usually constant
a. True b. False Indicate whether the statement is true or false
According to public choice theorists, people behave differently in the market sector than in the public sector because
A) the more people there are in the market sector the less influence they are able to exert, whereas the more people there are in the public sector the more influence they are able to exert. B) the fewer people there are in the market sector the less influence they are able to exert, whereas the fewer people there are in the public sector the more influence they are able to exert. C) self-interest is the motivating force in the market sector, whereas altruism is the motivating force in the public sector. D) altruism is the motivating force in the market sector, whereas self-interest is the motivating force in the public sector. E) institutional arrangements are different in the two sectors.
Since the 1980's, most of the economic growth has come from
A. emerging economies in Africa. B. eastern European countries. C. emerging economies of Asia. D. middle eastern countries.