A requirement for development is
a. an unreliable system of financial institutions
b. a lack of saving by households and firms
c. low confidence in domestic currency
d. low and predictable inflation that encourages saving
e. None of the answers is correct
D
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Refer to Figure 27-2. In the graph above, if the economy is at point A, an appropriate fiscal policy by Congress and the president would be to
A) execute an open market sale of government securities. B) increase marginal income tax rates. C) lower the discount rate of interest. D) increase government transfer payments.
In the above figure, points u, v, y, and z show
A) an inefficient allocation of society's scarce resources. B) possible combinations of televisions and personal computers. C) a constant trade-off between televisions and personal computers. D) that society prefers more televisions than computers.