In developing countries, it is not true that
a. banks are often viewed with suspicion
b. at the first sign of economic problems, many bank depositors withdraw their funds
c. because banks cannot rely on a continuous supply of deposits, banks cannot make loans for extended periods
d. if financial institutions fail to serve as intermediaries between savers and borrowers, the lack of funds for investment will make growth rates double
e. the credit provided by banks as a percent of total output is one fifth that in high-income countries
D
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The savings rate in an economy equals:
A) aggregate savings divided by GDP. B) GDP minus aggregate consumption. C) GDP divided by aggregate savings. D) aggregate savings multiplied by GDP.
If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then
A) new firms are attracted to the industry. B) existing firms will exit the industry. C) market supply will remain constant. D) firms are breaking even.