In a developing economy, scarcity of capital may have more to do with a lack of incentive for citizens to save and invest productively than with any absolute scarcity of income available for capital accumulation.
Answer the following statement true (T) or false (F)
True
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If the federal budget deficit grows too large, then we can safely state that it will be difficult for government to justify implementing contractionary fiscal policies
Indicate whether the statement is true or false
What is meant by a subprime mortgage?
What will be an ideal response?
In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by
A) both the required reserve ratio and the market interest rate. B) the required reserve ratio, nonborrowed reserves, and borrowed reserves. C) only borrowed reserves. D) only nonborrowed reserves.
The "A" in the neoclassical production function incorporates
a. new inventions. b. changes in efficiency. c. more productive capital. d. more efficient labor organization. e. all of the above.