Which of the following is not an argument in favor of export promotion over import substitution?
(a) international competition compels domestic producers to become more efficient.
(b) exposure to world markets provides greater opportunities to learn new technologies.
(c) producing for export permits greater specialization and economies of scale.
(d) outward-looking development promotes larger firms.
D
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What did Keynes and Hayek believe about government central planning?
a. Both believed that central planning could be used to allocate resources efficiently. b. Both believed that perverse political incentives would undermine the ability of central planners to allocate resources efficiently. c. Keynes believed that government central planning could improve on market outcomes; Hayek disagreed, arguing that both political incentives and insufficient information would undermine their ability to do so. d. Keynes believe that central planning would fail because the policy-makers did not have sufficient information to plan efficiently; Hayek believed that efficient central planning was possible if political decisions were made democratically.
If the actual money multiplier equals the potential money multiplier, and if the Fed wishes to reduce the money supply by $1 million when the reserve ratio is 10 percent, then the Fed should
A. buy $100,000 of government securities. B. sell $10,000 of government securities. C. sell $100,000 of government securities. D. buy $10,000 of government securities.