(I) Governments that respect property rights and freedom of exchange while following monetary (and fiscal) policies consistent with relative price stability, establish the foundation for economic growth. (II) Governments have often diminished the economic prospects of a nation by levying high taxes, instituting price controls, and following inflationary monetary policies
a. I is true; II is false.
b. I is false; II is true.
c. Both I and II are true.
d. Both I and II are false.
C
You might also like to view...
Refer to the graph below illustrating the Lorenz Curves for Sweden, the United States, and Brazil. Which country has the greatest equality in the distribution of income?
a. Sweden
b. United States
c. Brazil
d. The greatest equality in the distribution of income cannot be determined from this graph
According to some economists, the private sector is more efficient than the public sector mainly because:
Which of the following options is NOT a characteristic of a proprietorship?
A) single ownership B) unlimited liability C) double taxation D) easy to form and dissolve
Which of the following is most likely to be a monopolistically competitive firm?
A. a municipal water district B. a soybean farmer C. a fast food restaurant D. a lettuce farmer