The possibility of immiserizing growth can arise when
A. the terms of trade of a small country decline due to changes in the rest of the world.
B. the import-competing goods are overproduced in a large country.
C. there is a decline in the research and development investments in a large country.
D. a large country expands the production of its export-oriented goods.
Answer: D
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From the beginning of 1974 until January 2013, the value of the Canadian dollar has ________ relative to the U.S. dollar and ________ relative to the Japanese yen.
A) appreciated than depreciated; appreciated B) depreciated then appreciated; depreciated C) depreciated then appreciated; appreciated D) depreciated; depreciated
Compared with the recovery from the recession of 1981-82, the recovery from the recession of 2008-09 was characterized by
a. more rapid growth of real GDP. b. a more rapid decline in the rate of unemployment. c. larger increases in both government spending and budget deficits as a share of GDP. d. higher interest rates and a more restrictive monetary policy.