If a developing country makes its currency fully convertible, it runs the risk of having too:
A. high levels of domestic saving and investment.
B. much domestic saving and not enough domestic investment.
C. low levels of domestic saving and investment.
D. little foreign investment.
Answer: C
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The wide acceptance of fiat money is determined by: a. people's belief that it is worth something
b. the amount of precious metal that the government holds to back the money. c. the money's market value as a commodity. d. the rate of interest, which is the price paid to borrow money. e. its ability to function as a unit of account.
Refer to the information provided in Figure 27.1 below to answer the question(s) that follow.
Figure 27.1Refer to Figure 27.1. Suppose the economy is at Point A an increase in government purchases can cause a movement to Point
A. E. B. B. C. C. D. D.