A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account deficit. The imposition of the capital controls will cause
A) net exports to increase.
B) real domestic interest rates to rise.
C) real world interest rates to fall.
D) desired national saving to fall.
D
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How do entry barriers hamper economic prosperity?
What will be an ideal response?
Holding the level of prices fixed implies that a given increase in aggregate demand
A) will have a smaller effect on real GDP than would be the case if prices were more flexible. B) will have a larger effect on real GDP than would be the case if prices were more flexible. C) has the same effect on real GDP as when prices are more flexible. D) has a smaller effect on nominal GDP than when prices are more flexible.
Diseconomies of scale often arise because higher production levels allow specialization among workers
a. True b. False Indicate whether the statement is true or false
The distribution of income in the United States
A. became slightly more equal during the 1980s. B. did not change significantly during the 1980s. C. has become more unequal since 1980. D. has become more equal since 1980.