One problem with unrestricted global capital movements is that capital suppliers may
a. have little information about conditions overseas
b. react quickly to bad news regardless of economic fundamentals
c. be interested in short-run gains rather than development objectives
d. all of the above
D
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Which factor will decrease the demand for loanable funds?
A. A change in the tax law to exempt savings from taxation B. Expansion of social insurance to cover more fully the cost of retirement C. A general business recession that produces high rates of unemployment D. A technological advance that increases returns on investments
In a market system, the major coordination tasks are carried out
A. with the approval of central planners. B. as part of the regular appropriation process of Congress. C. irregularly by the major corporations. D. automatically by the market mechanism.