What are the main differences between the linear stages and international dependency models of development?
What will be an ideal response?
Lack of development is generated internally with the linear stages model, and is attributed to a lack of savings and investment. It is generated externally in the dependency model, and is the result of actions taken by the developed countries.
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Assume that no banks hold excess reserves, and the public holds no currency. If a bank sells a $100 security to the Fed, explain what happens to this bank and two additional steps in the deposit expansion process, assuming a 10% reserve requirement
How much do deposits and loans increase for the banking system when the process is completed?
Suppose capital and labor must be used in fixed proportions to produce widgets and that the price elasticity of demand for widgets is zero. Then the wage elasticity of demand for labor by widget makers will be
a. +1. b. ?1. c. 0. d. infinite.