Strong property rights are important for modern economic growth because:
they allow governments to extract the gains from private citizens' investments.
B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
C. they ensure an equitable distribution of income.
D. business cycle fluctuations will be smaller and less likely to disrupt investment patterns.
B. people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
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What would happen to an economy if the government funded an increase in spending with an equivalent increase in taxes?
What will be an ideal response?
On the graphs above, show how the central bank implements a decrease in the inflation target. In words, explain why the change in the real interest rate is temporary
What will be an ideal response?