An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.

The key factor leading to the financial crises in Mexico and the East Asian countries was

A) a deterioration in banks' balance sheets because of increasing loan losses. B) severe fiscal imbalances. C) a sharp increase in the stock market. D) a sharp decline in interest rates.

Which of the following is true? a. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. b. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. c. An increase in labor input necessarily increases output per capita

d. Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.