Higher saving is associated with
a. a larger capital stock and a higher standard of living.
b. a larger capital stock but not a higher standard of living.
c. a higher standard of living but not a larger capital stock.
d. neither a higher standard of living nor a higher capital stock.
a
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Under the modern system of fractional reserve banking, banks
a. keep cash reserves equal to only a fraction of their deposit liabilities. b. loan out their excess reserves at interest, which is the key to their profitability. c. are always potentially vulnerable to runs. d. All of the above are correct.
All of the following contributes to economic development except
A. high saving and investment rates. B. low population growth rate. C. the existence of a market economy. D. abundant exportable natural resources.
Which of the following are not members of DR-CAFTA?
A. Mexico B. the United States C. Honduras D. The Dominican Republic
A problem with using fiscal policy to fine-tune the economy is that
A. fiscal policy impacts the economy too fast. B. fiscal policy impacts only the largest states in the nation. C. fiscal policy impacts only urban areas of the nation. D. it takes time for policymakers to agree on the appropriate fiscal policy.