Many countries find it difficult to achieve economic growth. This is because economic growth
A) depends on technological change and technological change depends on noneconomic factors such as the growth rate of scientific knowledge.
B) is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue.
C) requires saving, and saving means less consumption today. A poor country may find it difficult to consume less today.
D) appears to be predetermined and not subject to factors that policy makers can have any affect on.
C
You might also like to view...
Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate. B) There will be a tendency for the level of output to decrease. C) There is an excess supply of commodities at the existing interest rate. D) There will be a tendency for interest rates to fall.
If the Federal Reserve "pegs" the interest rate, then in the IS-LM framework, the LM schedule
a. is vertical. b. becomes horizontal. c. slopes upward to the right. d. slopes downward and the left.
According to the above figure, the average propensity to save (APS) is zero at point
A) D. B) F. C) I. D) J.
A corporate IOU is called a
a. corporate bond b. corporate stock c. common stock d. preferred stock e. convertible stock