Most of the LDCs find it difficult to accumulate capital goods because
A. the terms of trade prohibit the inflow of private capital from the advanced nations.
B. it is very difficult to restrict consumption in order to free resources for capital goods production.
C. domestic monetary policies designed to achieve price stability result in low interest.
D. investment is interest inelastic in LDCs.
B. it is very difficult to restrict consumption in order to free resources for capital goods production.
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Despite the monies spent by the federal and state governments, many observers believe which of the following?
a. public infrastructure such as bridges and roads is only adequate b. our educational system is lacking c. not enough monies are spent on homeland defense d. all of these are correct
If the marginal propensity to save is 0.2, what is the expenditure multiplier?
a. 0.8 b. 1.2 c. 2 d. 5
Explain the determinants of exports and imports
What will be an ideal response?
What occurs in the second stage of economic development?
A. The manufacturing sector declines in importance. B. Most of the labor force works in agriculture. C. The service sector shrinks in its relative size. D. Manufacturing gains in importance and employs a large portion of the labor force.