The main point of the Consider This box on clipping coins is that:
A. decreases in the money supply cause deflation.
B. decreases in tax rates often increase tax revenues.
C. inflation imposes a "hidden tax" on those who hold money.
D. demand creates its own supply.
C. inflation imposes a "hidden tax" on those who hold money.
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At the equilibrium level of income, the value of consumption is equal to
A) (consumption - savings). B) (income - investment). C) (savings + investment). D) (income + investment).
Direct foreign investment has been most critical for China's domestic consumer market
Indicate whether the statement is true or false
The emphasis upon export surpluses in mercantilist theory
(a) is also called the "beggar-thy-neighbor policy" and a "favorable" balance of trade. (b) was thought to be a good thing by business people because it meant that more money was circulating and more money meant higher prices and brisk trade. (c) was thought to be a good thing by governments because it created brisk trade which yielded higher tax revenues than did slack trade. (d) is characterized by all of the above.
Have Malthus' predictions about population growth come true?
A) no, because modern birth control has limited population growth in all nations B) yes, as evidenced by the famine and food shortages affecting every nation today C) no, because the world's food supply has grown much more rapidly than Malthus foresaw D) Yes. The world's food supply, measured by calories per person, continues to fall.