Which of the following is consistent with a political and legal framework that discourages economic growth?
A. Taxation and regulation that are not very burdensome
B. The allocation of bank credit by the government rather than by markets
C. A speedy approval process for new businesses
D. Agricultural prices that are allowed to vary according to market conditions
Answer: B
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What factors generate economic growth?
What will be an ideal response?
Refer to Figure 5-3. The deadweight loss due to the externality is represented by the area
A) nso. B) mso. C) msn. D) mtn.
Moral hazard is a problem that arises when:
A. government discourages companies from taking risks. B. people benefit from the negative actions of others. C. people are required to bear the negative consequences of their actions. D. people don't have to bear the negative consequences of their actions.
If the Fed increases the money supply, then _____
Fill in the blank(s) with the appropriate word(s).