In the two-gap model, which of the following gaps, when binding, leads to foreign aid having the largest impact on GNP?
(a) Fiscal gap.
(b) Savings gap.
(c) Foreign exchange gap.
(d) None of the above.
C
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Scarcity
A. necessitates choice among consumer goods. B. of income renders purchase decisions interdependent. C. affects all consumer decisions. D. may involve forgoing the pleasure of one good in order to enjoy another. E. All of the above answers are correct.
Which of the following is more liquid?
A. A privately held company's stock B. A publicly held company's stock C. A house D. A rare painting
The base year is the year
A) in which prices are unstable. B) in which prices are lowest. C) in which prices are highest. D) that serves as a reference point or benchmark. E) in which nominal output is largest.
According to the theory of purchasing power parity, the real exchange rate between two currencies will equal ________ in the long run.
A. 1 B. the ratio of the rates of inflation of the two currencies C. the nominal exchange rate D. 0