Suppose a developing country is falling further behind the developed countries that it neighbors. As an economic consultant, you are called to look at its policies to recommend changes. If you saw all of the following on your visit, which of them could be an explanation for the slow growth in the economy?
A. You see that the roads, bridges, and ports are in great shape thanks to the work of the World Bank.
B. You see that new companies require few licenses to move their exports.
C. You see that the central bank does not pay attention to what the elected officials want.
D. You see that companies have to get official approval to remove their profits back to their home country.
Answer: D
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In the above figure, if the interest rate is 3 percent per year, the quantity of money demanded is
A) greater than the quantity of money supplied, and the demand for money curve will shift. B) greater than the quantity of money supplied, and the supply of money curve will shift. C) less than the quantity of money supplied, and the demand for money curve will shift. D) greater than the quantity of money supplied, and the interest rate will change. E) less than the quantity of money supplied, and the interest rate will change.
A nominal variable, such as the inflation rate or the money supply, which ties down the price level to achieve price stability is called ________ anchor
A) a nominal B) a real C) an operating D) an intermediate
Tariffs are ________
A) taxes levied on goods imported into the United States B) levied by state and local governments C) the primary source of federal revenues D) taxes on goods exported from the United States
Which of the following is not an example of a public good that the government has made excludable?
A. State colleges. B. Toll roads. C. City buses. D. Fire Protection.