One possible reason for slower growth in developing and transition countries is
A) capital may not be directed to its most productive use.
B) strict accounting standards are too stringent for the banks to meet.
C) the weak link between government and financial intermediaries.
D) the lack of adverse selection and moral hazard problems.
A
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Refer to Table 3-2. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. At a price of $6, the quantity demanded in the market would be
A) 87 lbs. B) 95 lbs. C) 103 lbs D) 215 lbs.
During its run on Broadway, the play The Producers regularly sold out all available tickets at the St. James Theater. The theater could have raised ticket prices from $75 to $125 and still sold all available tickets but chose not to do so
The best explanation for this decision is A) theater owners do not want to raise their prices on weekends, when demand is high, and then have to lower prices during the week, when demand is lower. B) firms sometimes give up profits in the short run to keep their customers happy and increase their profits in the long run. C) theater owners are unaware of the elasticity of demand for Broadway shows. D) theater owners are not motivated to maximize their profits.
The difference between real and nominal interest rates is
A. important because bonds are expressed in real rates. B. the unemployment rate. C. unimportant unless there is deflation. D. the expected inflation rate.
A political problem with discretionary fiscal policy is the
A. political business cycle. B. Federal Reserve. C. split control of the legislative and judicial branches of government. D. business cycle.