Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations
A) insure a small return on investment.
B) always insure the investments.
C) have a large portion of the world's unutilized or underutilized resources and hence profit potential.
D) get the International Monetary Fund (IMF) to back investments through a series of loan guarantees.
C
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A . Explain how public debt can crowd out private investment. b. Even if the crowding out effect does occur, explain the argument that crowding out does not necessarily undermine overall economic growth
If an investor thinks interest rates are likely to rise, she would:
A. sell her bonds and hold more money. B. buy more bonds now and hold less money. C. not change her money holdings at all. D. not alter her bond portfolio until interest rates actually rise.
Economists generally agree that
a. human capital theory provides the best explanation of discriminatory practices. b. differences in average wages do not by themselves provide conclusive evidence about the magnitude of discrimination in labor markets. c. discrimination is exclusively an economic, rather than political, phenomenon. d. most of the wage differentials observed in the U.S. economy are due to discrimination.
Other than its main role of controlling the supply of money, the functions of the Federal Reserve include