A Lorenz curve that is perfectly straight indicates
A) that society is very rich.
B) that a small portion of the population accounts for most of the income.
C) that a large portion of the population accounts for most of the income.
D) complete income equality.
Answer: D
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If a developing country institutes a currency board, it relinquishes control over having
A) monetary policy autonomy. B) exchange rate stability. C) freedom of capital movement. D) freedom of labor movement. E) all of its funds.
The Great Depression was an era marked by
a. steady growth in GDP and a decline in the rate of unemployment. b. a prolonged period of high unemployment and output substantially below its potential. c. a large decline in the stock market followed by a steady recovery. d. a failure of expansionary monetary policy to stimulate output and employment.