By reducing consumption expenditures, poor nations should be able to completely finance their own capital investment.
Answer the following statement true (T) or false (F)
False
Pervasive poverty in poor nations sharply limits the potential for increased savings. Nevertheless, governments can encourage more saving with improved banking facilities, transparent capital markets, and education and saving incentives.
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Nationwide banking might reduce bank failures due to
A) reduced competition. B) reduced lending to small businesses. C) diversification of loan portfolios across state lines. D) elimination of community banks.
Refer to the above table. How do we know that this is not a competitive firm?
A) The marginal physical product decreases as the amount of labor hired increases. B) The marginal revenue changes as output changes. C) The marginal revenue product decreases as the amount of labor increases. D) Marginal physical product cannot be computed for competitive firms.
Pollution is an example of a negative externality.
Answer the following statement true (T) or false (F)
An expansionary fiscal policy
I. includes an increase in government spending. II. includes tax cuts. III. increases a government budget deficit or reduces a government budget surplus. A) I, II, and III B) I and II only C) I and III only D) II and III only