According to the theory of structural patterns of development, which of the following tends to occur as a country develops?
a. a shift from agriculture to industry and services
b. an increase in the percentage of income spent on food
c. growth of the rural sector
d. a decline in trade as a share of GNP
A
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Describe some of the features hindering developing countries from growing faster
What will be an ideal response?
In Keynes's liquidity preference framework, individuals are assumed to hold their wealth in two forms
A) real assets and financial assets. B) stocks and bonds. C) money and bonds. D) money and gold.
________ within the U.S. can make loans to foreigners but cannot make loans to domestic residents
A) Edge Act corporations B) International Banking Facilities C) Universal banks D) Euro banks
Suppose the economy has a recessionary gap. By using an expansionary monetary policy, the Fed can
A) raise real GDP without increasing the price level. B) raise real GDP and the price level. C) raise real GDP and decrease the price level. D) raise the price level alone, but cannot increase real GDP.