A financing gap is:
A. the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth.
B. the extra savings a country has beyond that needed to achieve sustainable growth.
C. the difference in the amount of investment dollars coming in to a country and the amount of investment dollars going out of a country.
D. the extra investment developing countries need in foreign aid to sustain their current rate of growth.
A. the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth.
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Refer to Figure 15-9. What is the economically efficient output level?
A) 600 units B) 800 units C) 940 units D) 1160 units
Assume that the M1 multiplier is 3 and the Federal Reserve sells $100 million worth of government securities. Bank reserves will
A) rise by $100 million. B) fall by $100 million. C) fall by $300 million. D) fall by $33.33 million.
The Federal Open Market Committee
a. by law must focus on maintaining low inflation rather than stabilizing output. b. by law must focus on stabilizing output rather than maintaining low inflation. c. by law must follow a mechanical rule that takes into account deviations of unemployment from its natural rate and deviations of inflation from a target. d. operates with almost complete discretion over monetary policy.
The highest Herfindahl-Hirschman index
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.