The shrinking gap between the income levels of poor and rich countries is known as the
a. conservative hypothesis.
b. divergence hypothesis.
c. convergence hypothesis.
d. confluent hypothesis.
c
You might also like to view...
Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)
A) decrease in government spending. B) decrease in the price level. C) decrease in taxes. D) increase in the money supply.
An increase in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
A higher return on saving ______ the amount a household needs to save to achieve any target level of future consumption. This effect on saving is called the _______ effect. If the income effect is large enough, then a reduction in taxes on saving might ______ tax revenues
Fill in the blank(s) with correct word
The manipulation of a country’s money supply is typically the job of ______.
a. individual businesses b. the country’s banks c. its president or prime minister d. a central bank