Explain the extensive economic role of government within a developing country
What will be an ideal response?
An open question. Students should include 2 of the following in their answer along with discussion:
(1 ) Restrictions on international trade
(2 ) Government control over large industrial firms
(3 ) High level of government consumption as a share of GNP
(4 ) Strict management of exchange rates; limit exchange rate flexibility
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Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Morocco gain compared to the "without trade" numbers?
A) 0 B) 15 C) 60 D) 75
Grapevine Bank receives a deposit of $200,000. Its required reserve ratio is 12 percent. How much of this deposit is available to be loaned to borrowers?
a. $12,000 b. $176,000 c. $200,000 d. $24,000